What is Click-Through Rate (CTR)?
CTR is the percentage of users who click on an ad after seeing it, indicating how compelling or relevant the ad is to the target audience.
Table of Contents
Full Definition
Calculated as (Clicks ÷ Impressions) × 100, CTR is a key performance indicator reflecting ad effectiveness.
Higher CTRs suggest engaging ads and relevant targeting, which often lead to better Quality Scores and lower costs per click.
Marketers aim to optimize CTR through creative testing, targeting refinement, and landing page alignment.
Examples
Clicks divided by impressions
Indicator of ad relevance
Influences ad quality score
Benefits
Improves ad ranking
Reduces cost per click
Signals audience engagement
Common Mistakes
Can be misleading if conversion is low
Affected by industry and campaign type
Requires context for interpretation
Conclusion
Monitoring and improving CTR is essential for efficient paid advertising.