Click Through Rate is basically how many people in 100 click your ads. This is very important on Google where basically your search position is mainly a mix of how high your CTR is and how much you are willing to bid. Essentially someone can pay less with a higher CTR. This can make or break you. That's why it is important to test as many different ad variations as possible.
Click-through rate or CTR is a way of measuring the success of an online advertising campaign. A CTR is obtained by dividing the number of users who clicked on an ad on a web page by the number of times the ad was delivered (impressions). For example, if a banner ad was delivered 100 times (impressions delivered) and one person clicked on it (clicks recorded), then the resulting CTR would be 1 percent. Banner ad click-through rates have fallen over time, often measuring significantly less than 1 percent. By selecting an appropriate advertising site with high affinity (e.g. a movie magazine for a movie advertisement), the same banner can achieve a substantially higher click-through rate. Personalized ads, unusual formats, and more obtrusive ads typically have higher click-through rates than standard banner ads. CTR is most commonly defined as number of clicks divided by number of impressions and generally not in terms of number of persons who clicked. This is an important difference because if one person clicks 10 times on the same advertisement instead of once then the CTR would increase in the latter definition but would stay the same in term of earlier definition.
Hi, Friend CTR means click through rate and the formula for CTR is " clicks/impression * 100 %" Nicely 2 to 5 % CTR is good for any PPC campaign.
VisionMaster answered you really good. What I want to say is that CPR is a good measure of PPC campaigns, but it's not the best. The best would be conversion rate; I had campaigns with 3% CTR and 18% conversion rate, which means that your ads are highly targeted, but most of users who click on the ad become buyers which is great. So, if there is no conversion wanted, CTR is a good measure.
Thank you, i hope my answer can be also big help for others lots of people have no idea about this small letters things, sounds like complicated math.