Click-through Rate (CTR)

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Click-through rate (CTR) is a metric that measures the number of clicks an advertisement or a link receives divided by the number of times it was shown. This metric is commonly used in digital marketing to evaluate the effectiveness of online advertising campaigns, email marketing campaigns, and website performance.

CTR is an important metric for product managers as it helps them to understand how well their products are performing in terms of attracting user engagement. A high CTR indicates that users are finding the product or advertisement relevant and engaging, while a low CTR may indicate that the product or advertisement needs improvement.

To calculate CTR, divide the total number of clicks by the total number of impressions (the number of times the advertisement or link was displayed). For example, if an advertisement was displayed 1000 times and received 50 clicks, the CTR would be 5%.

It is important to note that CTR alone does not provide a complete picture of the success of a product or campaign. Other metrics such as conversion rate, bounce rate, and engagement rate should also be taken into consideration to evaluate the overall performance of a product.

Product managers can use CTR to optimize their products and campaigns by testing different variations of advertisements, headlines, and calls-to-action to determine which ones generate the highest CTR. By continuously monitoring and improving CTR, product managers can increase user engagement and drive business growth.