What is Click-through rate (CTR)?

Click-through rate (CTR) represents the ratio of clicks to impressions in digital advertising. It measures how often people click on an ad after seeing it. A high CTR indicates that an ad is relevant and engaging to the audience, while a low CTR may imply that the ad needs optimization or does not resonate with the target audience.

CTR is an important metric for marketers as it helps them evaluate the effectiveness of their ads and optimize campaigns accordingly. By analyzing CTR data, advertisers can gain insights into which ads are performing well and make informed decisions about allocation of budget and resources.

CTR varies across different platforms, industries, and types of ads. While there is no universal benchmark for what constitutes a good CTR, some averages can be used as reference points. For instance, Google Ads' average CTR for search ads in 2020 was 7.9% for the top position and 2% for other positions on average.