Click-Through
Rate (CTR) is the ratio of users who click on a specific
link to the number of impressions. The
click through rate is a metric that allows users who manage online marketing
campaigns to identify if the information presented to searchers is relevant.
CTR is
used to measure the success of an online advertising campaign
for a particular website specific to search as well as the effectiveness
of email campaigns. Click-through rates for ad campaigns vary
tremendously.
Cost
per acquisition (CPA), also known as cost per action, pay per acquisition (PPA)
is an online advertising pricing model where the advertiser pays for a
specified acquisition – for example a sale, click, or form submit (e.g.,
contact request, newsletter sign up, registration etc.)
Direct
response advertisers often consider CPA the optimal way to buy online
advertising, as an advertiser only pays for the ad when the desired acquisition
has occurred. The desired acquisition to
be performed is determined by the advertiser. In affiliate marketing, this
means that advertisers only pay the affiliates for leads that result in a
desired action such as a sale. This removes the risk for the advertiser because
they know in advance that they will not have to pay for bad referrals, and it
encourages the affiliate to send good referrals.
Radio and TV stations also sometimes offer unsold inventory on a cost
per acquisition basis, but this form of advertising is most often referred to
as "per inquiry". Although less common, print media will also
sometimes be sold on a CPA basis.
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