Definition
Click-Through Rate (CTR) is the percentage of people who click an ad, email, or search result after seeing it, calculated by dividing total clicks by total impressions. It measures how compelling an ad’s headline, image, or offer is at prompting someone to act on it.
In Plain Terms
If impressions count everyone who glanced at a shop window, CTR is the percentage who actually walked over and tried the door — a low CTR usually means the window display isn’t convincing, not that too few people passed by.
How It Works
- Calculated as (clicks ÷ impressions) × 100
- Directly affects Quality Score on platforms like Google Ads — higher CTR often lowers CPC
- Improved by testing headlines, ad copy, images, or the offer itself, rather than just increasing budget
Examples
- An ad shown 10,000 times generating 150 clicks has a 1.5% CTR
- Comparing CTR across two ad variations in an A/B test to pick the stronger headline
- A low-CTR, high-impression ad flagged for a creative refresh rather than a budget increase
Commonly Confused With
- CTR vs conversion rate — CTR measures clicks on the ad itself; conversion rate measures what happens after the click, on the landing page
- CTR vs CPC — CTR is a performance percentage; CPC is the price paid per click, and the two often move in opposite directions
