coverspace - streetsmart with web analytics

Back with definitions of the most common web and monetizations metrics. Today we are featuring Leads and CTR - next and last post will be about PPC and the so-called CPX.

Let´s dive right into defining:

1) Lead
In general a lead refers to a potential buyer making contact with a seller. Thus a lead could be interpreted as a referral with a commercial intent.

Example: if a user clicks on a link on shopping.com that then takes him to an amazon.com landing page this click is then considered a lead to amazon.com from shopping.com. So if you will the link on shopping.com “leads” the potential client to amazon.

2) CTR
CTR is short for click-through-rate. It is a derived metric and generally describes the relation between the number of times the user actually clicks on a certain link and the number of possibilities users have to see and hence click on that link (often measured in Page Impressions or Page views (see last post) or Link views).

Clicks (on link x)
——————————————————-
Page Impressions (or link views of link x)

Example: Let us assume that www.example.com is opened 1000 times in one day. The link “set this page as your homepage” is clicked on 10 times during that one day. Hence the CTR is 10/1000 = 0.01 or 1%.

The click-through-rate can be interpreted as the vote of the user for a certain link or - more general - a metric that tells us something about relevancy. It is assumed that when the user deems a link as relevant he or she will click on it. Thus the higher the CTR the more relevant the link is deemed by the users. For example Google uses the CTR as one input factor to determine if and where to show a sponsored listing on their search results page.

Stay tuned for the third and final part….

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