Click-through rate (CTR) is a metric that measures the number of clicks an ad or a link receives relative to the number of impressions, or views, it generates. CTR is expressed as a percentage and is calculated by dividing the number of clicks by the number of impressions and then multiplying by 100.
For example, if an ad received 1,000 impressions and 50 clicks, the CTR would be calculated as follows:
CTR = (50 clicks / 1,000 impressions) x 100% = 5%
CTR is an important metric for digital marketers, as it provides insights into how effectively an ad or a link is engaging its target audience. A higher CTR generally indicates that an ad or a link is more relevant and appealing to its target audience, while a lower CTR may suggest that the ad or link needs to be revised or optimized to better resonate with its audience.
CTA stands for "call-to-action" and refers to a prompt or directive given to the user to take a specific action.
DTC, or direct-to-consumer, refers to a business model where a company sells its products or services directly to consumers, bypassing traditional retail channels.
Customer Lifetime Value (CLV) represents the total funds a consumer spends at a business for products and services without any specific time measurements restricting the data.
