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HomeNew & BlogWhat is Click-Through-Rate (CTR), and why does it matter?

What is Click-Through-Rate (CTR), and why does it matter?


Click-through-rate (CTR) is a useful indicator of online engagement, expressed in a ratio or percentage—the number of clicks that an ad generates divided by the number of times the ad has been seen (impressions). CTR indicates whether users find your content relevant and engaging enough that they would like to click and learn more about your ad or even take further action. When it comes to CTR, the more attention received, the higher the chance of sales for the product or service.

Aligned interests

CTR is a vital metric that enables you to better understand your customers, and evaluate the performance of your digital marketing campaigns.

In the digital marketing world, marketers evaluate their campaigns’ effectiveness by CPC (advertiser pays per user click), which is a measurement that can be associated with the metric of CTR.

The CTR of an ad, landing page, or article is the number of clicks to another page that it receives. CPC is a metric that determines how much advertisers pay for the ads they place based on the number of actual clicks the ad receives, while high CTR implies the advertising campaign has successfully reached the right audience.

Advertisers and publishers both aim to maximize CTR—publishers want to achieve the highest number of clicks by presenting their audience with the most relevant ads; whereas to advertisers, higher CTR means better sales and return-on-ad-spending (ROAS).

Although CTR performance depends on a range of factors, including targeting rules like age and interests, as well as impression frequency, which refers to how often you see the ad, etc, advanced AI solutions can also provide the perfect remedy.

Optimizing CTR with AIgoAD

Deploying AI, the AlgoAD solution strives to maximize CTR. Here’s how:

Better user embedding

AlgoAD transforms features such as the user subscription level into vectors through learnable mapping, producing more efficient user representation with less storage / memory usage and more effective privacy protection.

Improved user behavior processing

Today’s AI-based ad serving solutions process data on user features and behaviors, such as users’ device type and browsing history, to produce a highly personalized and accurate representation of users which can be utilized to accurately predict CTR performance. This prediction capability enables you to maximize the number of potential visitors who would most likely respond to your ads.

Attention/ multiple user interests

Nowadays, users typically have multiple interests and divide their attention among them. AlgoAD’s ability to track and record users’ dominant interests at any given time makes it possible to dynamically deliver ads that correspond with users’ top interest, and boost the CTR in the process.


Get help to improve the CTR

Need a hand to optimize your advertising campaigns with higher ROAS? Contact us today to learn more about how our AlgoAD solutions could help you.

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