Difference Between Conversion Rate and Click Through Rate

There are many online and offline crash courses available which are generating a massive response and also containing lots of jargon, so as to understand the marketing questions really mean, what is the objective behind using them and how to present for the results. In this topic, we are trying to clear the difference between Conversion Rate and Click Through Rate.

What is Click Through Rate?

Click-through-rate

Click Through Rate (CTR) is a metric, considered and termed in the percentage forms. It is convenient for the measurement and quantifying the numbers of visitors clicking the advertisements and indicates the visitors’ number for the landing page. The click-through rate has a very important and significant role in measuring and auditing the reach of the business. In other words, the effectiveness of the advertisement for that matter. Although, mere high click-through rates are not always the right indicator. The unique and realistic keywords used in the advertisement, the originality, and creativity of the content, which in turn involves the target or prospective audience.

 

The Calculation of the Click Through Rates for Paid Advertisement

Calculation of CTR

The total numbers of clicks are divided by the total number of impressions or the total number of people who have visited and seen the advertisement.

Note: It is important to multiply the result with 100 so as to save time while calculating the percentage.

It is a common term used by the marketers i.e. Click Through Rate, especially in paid advertising. There exist many other ways to calculate the click-through rates on other channels.

E.g. I wish to calculate the number of people visiting my website or the landing page. For this, I need to look at the CTR. Eventually, this will help me to decide about the appropriate strategy to have more CTRs.

 

What is Conversion Rate

Conversion Rate

Conversion Rate is a metric, depicted in the form of a percentage, it depicts the numbers of visitors on website or app visitors completing the final action or purchase out of the total number of visitors.

 

The significance of Conversion Rate

Many marketers and entrepreneurs believe that the conversion rates are the best tool to monitor and measure as it has implication on the business directly, and overall revenue and sales volumes.

There are different schools of thoughts which think and project it differently and claim it as a result of multiple reasons

  • Wrong keywords, wrong or unrelated to the product or service, broken lead capture forms etc.
  • It is believed that it is easy and take less time to intensify web conversions in comparison to the intensifying web traffic.
  • Optimization of Conversion rates eventually optimizing web traffic.

Related: How to Bring More Conversion

Calculation of Conversion Rates

In order to calculate the Conversion Rate, the total number of visitors on the website or landing page by the total figure of completed goals.

Note: The results are supposed to be multiplied with 100, in order to save extra time in calculating and converting the same into the percentage.  

It is imperative to note that the formula is revised based on the type of conversions being measured.

 

Many People get Confused in Understanding the Difference b/w Conversion Rate and Click Through Rate (CTR)

Difference Between Conversion Rate and Click Through Rate

The click-through rate refers to the number of clicks that are generated through any marketing activity. It is a percentage of the number of imprints that were served. This term is frequently used in ad and email campaigns.

Conversion Rate refers to the next stage by observing at a positive action that anyone looking forward to converting into. It requires the capturing of data and downloading the content. The conversion rate depicts the number of visitors acting as a percentage of the number of impressions. So, it will be lesser than the CTR of any of the marketing campaign.

It has been usually important to observe on these metrics simultaneously and the CTR is not taken into isolation. The lower CTR is not said to bad sign in case the conversion rate is boosting or beating the benchmarks. It may be possible that you have been using the specific call to action which is bringing the targeted traffic. The cost-per-click campaigns offer the higher Return on Investment than bringing lots of clicks with lower conversion rate.

 

Tracking of Conversion Rates and Click-Through Rates

Many analytics tracking tools help to measure the Conversion Rates and Click-Through Rates. One of the best tools that control ultimately is Google Analytics that allows you to grab an understanding of the audience, behavior, and then comes on profits.

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