What is the formula for calculating the click-through rate (CTR)?

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Prepare for the WGU MKTG 6040 D381 E-Commerce and Marketing Analytics Exam. Use flashcards and multiple choice questions with hints and explanations. Ensure your success on this crucial exam!

Multiple Choice

What is the formula for calculating the click-through rate (CTR)?

Explanation:
CTR measures how often people who see an ad actually click it. It’s calculated by dividing the number of clicks by the number of impressions and multiplying by 100 to express it as a percentage. This shows the effectiveness of an ad in prompting engagement per exposure. For example, if an ad gets 50 clicks from 1,000 impressions, CTR = (50 / 1000) × 100 = 5%. If you reversed the ratio (impressions divided by clicks) you’d get how many impressions per click, not the click-through rate. Multiplying both numbers and then dividing by 100 would mix the units and produce a meaningless value.

CTR measures how often people who see an ad actually click it. It’s calculated by dividing the number of clicks by the number of impressions and multiplying by 100 to express it as a percentage. This shows the effectiveness of an ad in prompting engagement per exposure.

For example, if an ad gets 50 clicks from 1,000 impressions, CTR = (50 / 1000) × 100 = 5%.

If you reversed the ratio (impressions divided by clicks) you’d get how many impressions per click, not the click-through rate. Multiplying both numbers and then dividing by 100 would mix the units and produce a meaningless value.

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