At this point it is worthwhile mentioning what the terms “impressions”, “clicks” and “click through ratio” (often abbreviated to “CTR”) mean and why these metrics are important to online marketing professionals and why you can use these to leverage your website’s advertising offering to your advertising customers.
Impressions are a measure of the number of times an ad banner was displayed over a period of time. In some marketing campaigns, particularly in brand building, this is an important metric as it indicates the exposure that the ad or brand received.
Clicks are literally a measure of the number of times an ad banner was clicked over a period of time. To advertisers, this is an important metric as it represents a person who has found the ad, the brand or the product or service being offered “interesting enough” to find out more.
Click through ratios (CTRs)
This is a percentage of the number of clicks as compared with the number of impressions. For example, if during a particular month an ad banner had 1,000 impressions and 50 clicks, the CTR would be 5%.
This is a very important metric as it can indicate the effectiveness of a banner. For example, if over the course of a month we have two banners that have the following:
- Banner A having 1,000 impressions and 50 clicks … CTR = 5%
- Banner B having 5,000 impressions and 100 clicks … CTR = 2%
Although Banner B has much higher exposure and more clicks, Banner A has been more effective at attracting prospects and therefore has more intrinsic value in marketing terms.
Knowing these metrics can allow “tweaking” in order to improve the campaign. For example, these include:
- The page(s) that the banner appears on
- The position within each page
- The surrounding content
- The banner graphic