What Is CTR? (Click-Through Rate Meaning)

CTR (Click-Through Rate) is a key digital marketing metric that measures how often people click on an online ad after seeing it.

Click-Through Rate Definition

The click-through rate is calculated by dividing the number of clicks an ad receives by the number of times the ad is shown (impressions) over a specific time period.

CTR = Clicks ÷ Impressions

CTR is widely used in digital marketing to evaluate how effective an ad is at attracting attention and encouraging users to take action. A higher CTR generally means your ad is more relevant and engaging to your audience.

How to Calculate CTR (CTR Formula)

Let’s look at an example using an ad from Company Alpha:

• Company: Company EzCalculatorOnline

• Ad name: Ad Calculator

• Ad impressions: 5,500

• Number of clicks: 500

Step-by-Step CTR Calculation

1. Determine Ad Impressions

Ad impressions refer to the number of times an online ad is displayed to users.
In this case, Ad Alpha has 5,500 impressions.

2. Determine the Number of Clicks

Clicks are the number of times users actually click on the ad.
Here, the ad received 500 clicks.

3. Apply the CTR Formula

$$CTR = \frac{\text{Number of Clicks}}{\text{Ad Impressions}}$$

$$CTR = \frac{500}{5,500} = 9.091\%$$

Ad Alpha’s CTR is 9.09%.

You can use a CTR calculator to instantly compute this value without doing the math manually.

Click-Through Rate in Practice: What Is a Good CTR?

After understanding what CTR is and how to calculate it, the next step is knowing how to interpret it.

CTR benchmarks vary depending on the type of advertising:

• Display ads: ~0.35% average CTR

• Search ads: ~1.9% average CTR

• Email campaigns: Typically 10%–20% CTR

What Is Considered a Good CTR?

A “good” CTR depends on:

• The ad format

• The platform

• Your industry

To evaluate performance, compare your CTR with industry averages for similar ads. If your CTR is higher than the benchmark, your ad is generally performing well.

FAQs About Click-Through Rate (CTR)

What Is the Average Click-Through Rate?

The average CTR is calculated by adding the CTRs of all ads and dividing by the total number of ads. It provides an overall view of ad performance.

Typically, average CTRs range from 0.35% to 1.9%, depending on ad type.

How Do I Calculate CTR?

You can calculate CTR in three simple steps:

1. Find the number of ad impressions

2. Find the number of clicks

3. Apply the formula:
   CTR = Clicks ÷ Impressions

Is CTR Used to Measure Online Ad Performance?

Yes. CTR is one of the most commonly used metrics to measure online ad performance, as it shows how likely users are to engage with your ads.

What Is an Ad Impression?

An ad impression is counted every time your ad is shown to a user, regardless of whether it is clicked. It represents how many times people have seen your ad.