Annual Recurring Revenue (ARR)
METRIC
REVENUE OPERATIONS
The normalized annualized value of contracted recurring subscription revenue generated by active customer accounts.
METRIC
PERFORMANCE ADVERTISING
Click-Through Rate (CTR)
The percentage of eligible impressions that produced a click, calculated as clicks divided by impressions multiplied by 100.
BUSINESS RELEVANCE
It affects media efficiency, measurement confidence, reach and brand risk, so it informs budget allocation and campaign governance.
IMPLEMENTATION EXAMPLE
A cross-functional team applies Click-Through Rate (CTR) in a production initiative, defines ownership and success criteria, tests representative scenarios, monitors outcomes and records corrective actions before scaling.
LIMITATIONS
Platform definitions, identifiers, attribution and privacy controls vary, so figures may not be comparable and reported performance may not establish causality.
TECHNICAL EXPLANATION
The percentage of eligible impressions that produced a click, calculated as clicks divided by impressions multiplied by 100. In operation, this concept depends on defined inventory, auction or delivery rules, identifiers, attribution windows, consent, quality controls and platform reporting. Teams should document the measurement system and distinguish platform-reported results from independently verified business outcomes.
Secondary Topics
Experience Design, Search Optimization
Sources
IAB — Digital Advertising Guidelines — https://www.iab.com/guidelines/; Google Ads Help — https://support.google.com/google-ads/
Related terms
Pipeline Velocity
METRIC
REVENUE OPERATIONS
A revenue metric calculating the speed and rate at which qualified sales prospects move through the sales pipeline into won deals.
Return on Ad Spend (ROAS)
METRIC
PERFORMANCE ADVERTISING
A digital advertising metric measuring gross revenue generated for each currency unit invested in ad campaigns.
Page Authority (PA)
METRIC
SEARCH OPTIMIZATION
A proprietary Moz SEO score predicting the ranking strength and link equity potential of an individual web URL.
Conversion Rate (CVR)
METRIC
PERFORMANCE ADVERTISING
The percentage of total visitors or interactions that successfully complete a designated valuable marketing or transaction goal.