Clickthrough rate is the method used by online advertisers to measure the percentage of clicks on an advertisement. They use it to measure the success of the campaign.
Online advertising is a great way to sell products and services through the internet. All that is needed is for an advertising company to set up banner ads and other types of online advertising tools and wait for people to click on the links. Clickthrough rate is a way for advertisers to get insight as to how a particular advertising campaign is progressing.
How the Clickthrough rate is calculated
Clickthrough rate is measured using a simple mathematical formula. For this formula to work, two pieces of information are needed. The first information is the number of clicks on a particular banner ad and the second is the number of times this banner ad has been published or impressed on a website. If a particular banner ad or a affiliate link has low clickthrough rates, then the advertiser may remove it.
What clickthrough rate has indicated
The amount of banner ads has greatly decreased throughout the years. This is because online advertisers noticed that there was a decrease in number of clicks. They noticed this through clickthrough rates. Most internet users are not interested in buying products which are advertised by such ads. Furthermore, banner ads are a way for malware to spread. The types of banner ads which propagate malware are called adware. To protect a PC of such malware, an anti-adware needs to be installed on the PC.
Clickthrough rates as a tool
Clickthrough rate is a good way for online advertisers to get an insight about what types of banner ads are attracting more customers. They may use the information obtained through clickthrough rates to concentrate their effort on one particular type of ad or product.
Lien source: http://en.wikipedia.org/wiki/Clickthrough_rate