Which definition correctly describes CTR?

Explore the Promotional Mix in Marketing. Prepare with quizzes using multiple choice questions, each accompanied by explanations and study aids. Ace your exam with confidence!

Multiple Choice

Which definition correctly describes CTR?

Explanation:
CTR measures how often people click after seeing an advertisement. It is calculated by dividing the number of clicks by the number of impressions, and is usually shown as a percentage. This matches the correct definition: clicks divided by impressions. For example, if an ad is shown 1,000 times (impressions) and earns 40 clicks, CTR = 40/1000 = 0.04 or 4%. The other ideas aren’t CTR. Conversions divided by visits is the conversion rate, not CTR. Impressions divided by clicks would be the inverse of CTR (roughly how many impressions you get per click), not the click-through rate. Revenue divided by spend is return on ad spend (ROAS), not CTR.

CTR measures how often people click after seeing an advertisement. It is calculated by dividing the number of clicks by the number of impressions, and is usually shown as a percentage. This matches the correct definition: clicks divided by impressions. For example, if an ad is shown 1,000 times (impressions) and earns 40 clicks, CTR = 40/1000 = 0.04 or 4%.

The other ideas aren’t CTR. Conversions divided by visits is the conversion rate, not CTR. Impressions divided by clicks would be the inverse of CTR (roughly how many impressions you get per click), not the click-through rate. Revenue divided by spend is return on ad spend (ROAS), not CTR.

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