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Only a small proportion of those seeing the advertisement or link actually click the link. The metric used to describe this ratio is the click-through rate (CTR) and represents the top level of the funnel. Typical banner and advertising click-through rates are 0.02% in late 2010 and have decreased over the past three years.
Click-through rate (CTR) is the ratio of clicks on a specific link to the number of times a page, email, or advertisement is shown. It is commonly used to measure the success of an online advertising campaign for a particular website, as well as the effectiveness of email campaigns. [1] [2] Click-through rates for ad campaigns vary tremendously.
Conversion rate: the ratio of orders to visitors [2] Drop-off rate: the ratio of users that started processes but did not finish [3] Clickthrough rate: the ratio of total visitors with exposure to an advertisement, over those visitors who clicked through to the website [4]
The process of improving the conversion rate is called conversion rate optimization. However, different sites may consider a "conversion" to be a result other than a sale. [3] Say a customer were to abandon an online shopping cart. The company could market a special offer, like free shipping, to convert the visitor into a paying customer.
In measuring view-based conversions, there is room for manipulation. Because viewthrough conversions are tied to the setting the ad network's cookie and later matching it up via the same ad network's page tag loaded on a conversion page, [4] less scrupulous ad networks have taken advantage of this by purchasing cheap below-the-fold ad inventory more for the purposes of dropping as many cookies ...
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Conversion rate optimization seeks to increase the percentage of website visitors that take a specific action (often submitting a web form, making a purchase, signing up for a trial, etc.) by methodically testing alternate versions of a page or process [citation needed], and through removing impediments to user experience and improving page loading speeds.
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