In short: CTR is the proportion of clicks to impressions of a link or advertisement. It helps assess response to a message, but does not say whether the visit produced a quality result.
How I use CTR (Click Through Rate) in practice
Before tracking CTR, I write its precise definition, data source and the decision it should influence. I check numerator, denominator, time window, currency and duplicates. I read the value in the context of margin, capacity and customer quality; one number without comparison cannot tell a company what to change.
What to watch
The greatest risk is a report without a decision. If CTR is measured merely because the interface offers it, the team gets another graph, not better management. Also beware comparing periods in which the website, tagging or counting method changed.
Questions for decisions
- Exactly how do we calculate the value and from which source?
- Which decision changes when the number rises or falls?
- What can distort or duplicate measurement?
- What do we compare the value with so it has business meaning?