Click-Through Rate (CTR): What It Is & Why It Matters

If you want to know how well your ads are really connecting with your audience, Click-Through Rate (CTR) is where you start.

What is CTR?

Simply put, CTR measures the percentage of people who click your ad after seeing it. It’s a straightforward way to see how relevant and compelling your ad is to the people searching for your keywords.

How Do You Measure CTR?

It’s a simple formula

(Number of Clicks ÷ Number of Impressions) × 100 = CTR %

So, if your ad was shown 1,000 times and 50 people clicked it, your CTR is 5%.

Why CTR Matters

A high CTR means your ad is hitting the mark, it’s relevant, attention-grabbing, and aligned with what your audience wants.

If your CTR is low, it’s a signal to pause and investigate:

  • Is your ad showing up for the right searches? Sometimes irrelevant traffic sneaks in.
  • Is your ad copy compelling enough compared to your competitors? If not, it might be time to tweak your headlines or calls to action.

Think of CTR as a quick health check for your ads. If it’s low, don’t ignore it, it’s your cue to optimize.

Tip: Regularly review competitor ads to see what’s working in your space, then test new copy or targeting to lift your CTR. Small tweaks can make a big difference.