Click-through rate (CTR) refers to the number of times a user
clicks on a Web page advertisement compared to the total numbers
of visitors viewing the ad. Advertisers use the click-through
rate to gauge interest in an advertisement. Depending on the way
the ads are being sold, the CTR may also translate directly to
the dollar amounts for the online publisher that is hosting the
ad. In order to measure consumers' interest in an advertised
product, the click-through rate is calculated. For example,
suppose that 100 visitors go to XYZ.com, which sells computer
routers. On XYZ's website is a specific advertisement that shows
a brand of router for sale. Of those 100 website visitors, one
person clicks on the advertisement. Thus, the click-through
ratio is calculated as 100 visitors divided by one click on
advertisement, which equates to a 1 percent click-through rate.
Pay-per-click (PPC) is an advertising model used online in which
advertisers only pay the publisher when visitors click on their
advertisement. Unde