What is Click-Through Rate (CTR)?

Click-Through Rate (CTR) is a vital metric in digital advertising that measures the effectiveness of your ads by calculating the percentage of users who click on your ad after seeing it. A high CTR indicates that your ad successfully captures the interest of your audience and compels them to take action, making it a key performance indicator for any campaign.

CTR is commonly used to evaluate the success of display ads, pay-per-click (PPC) campaigns, email marketing efforts, and even organic search listings. For businesses focused on paid media and programmatic advertising, like those using Agility, monitoring CTR helps ensure ad relevance and boosts the overall return on investment (ROI).

How to Calculate Click-Through Rate (CTR)?

To calculate CTR, you divide the total number of clicks your ad receives by the total number of impressions (views) it generates and multiply the result by 100 to express it as a percentage. This calculation provides a clear picture of how well your ad engages its audience.

Click-Through Rate Formula

CTR = (Total Clicks ÷ Total Impressions) × 100

Example:

Let’s say your ad received 500 clicks and was shown 20,000 times. 

Using the formula:

CTR = (500 ÷ 20,000) × 100 = 2.5%

This means that 2.5% of people who saw your ad clicked on it, giving you a benchmark to measure success.