View Through Rate (VTR)

What is View Through Rate (VTR)?

View Through Rate (VTR) is a metric used to measure the percentage of users who view an advertisement but do not click on it. It is commonly used in display advertising campaigns to gauge the effectiveness of ad impressions.

The formula for VTR:

How is VTR used by e-commerce businesses?

VTR is a valuable metric for e-commerce businesses as it helps to measure the impact and effectiveness of display advertising campaigns. By tracking the percentage of users who view an ad but do not click on it, businesses can gain insights into the effectiveness of their ad creative, targeting, and overall campaign strategy.

Additionally, VTR can be used to compare the performance of different ad placements, formats, or creative variations. By monitoring VTR, businesses can optimize their advertising efforts to maximize engagement and drive conversions.

What is a good result for VTR?

A good VTR can vary depending on the industry and the specific campaign goals. However, in general, a higher VTR indicates that the ad is capturing the attention of viewers and generating interest.

For example, let’s say you’re running a display advertising campaign for a fashion e-commerce store. Your goal is to increase brand awareness and drive traffic to your website. In this case, a VTR of 1% or above would be considered good. It means that at least 1% of the users who saw the ad were sufficiently engaged to view it without clicking.

What is a common mistake when analysing VTR?

A common mistake when analyzing VTR is solely focusing on the percentage itself without considering other relevant metrics. While VTR provides insight into ad engagement, it does not directly measure conversions or sales. Therefore, it’s important to consider VTR in conjunction with other metrics such as click-through rate (CTR), conversion rate, and return on ad spend (ROAS).

For example, a high VTR may indicate that the ad is capturing attention, but if the CTR and conversion rate are low, it suggests that the ad may not be effectively driving users to take desired actions, such as making a purchase. Therefore, it’s important to analyze VTR in the context of the broader marketing goals and campaign performance.