Click Through Rate (CTR)

In simplest words, Click Through Rate can be defined as the ratio of the number of clicks on an advertisement to the number of times the advertisement is shown to the users. CTR is used to measure how well your advertising campaigns or keywords are performing. The simple formula to calculate CTR is:

CTR = (Number of Clicks Received by Your Ad / Number of Times The Ad was Shown)*100 or (Clicks / Impressions)*100

Let us help you understand with an example. Suppose the number of impressions on your advertisement is 1,000 and the number of clicks on it is 100. Here, the CTR would be (100/1,000)*100 = 10%.

CTR is not only used to measure the performance of advertisements but also for keywords and free listings. A high CTR indicates that your campaign is performing well and users are finding your ad content helpful and relevant to their interests. On the other hand, a low CTR indicates that users can not relate to your ad content and you need to make improvements to it. 

If you use digital marketing strategies to expand your business, CTR is an important concept you must understand and apply to measure the performance of your ad campaigns.

Also Read - Organic Traffic