Click-Through Rate (CTR) is a metric used in digital marketing for measuring the effectiveness of display ads, email campaigns and other forms advertising targeted at driving clicks. CTR measures how much users are interacting with the ads, and is calculated by dividing the number of clicks by the number of times it is shown (impressions). A higher CTR generally indicates that an ad or link is relevant and appealing to the audience, while a low CTR could suggest that the ad needs adjustments, such as better targeting or improved content.
Click-Through Rate Formula
Click-Through Rate (CTR) = Number of Clicks / Number of Impressions.
To arrive at a percentage, one can multiply the number above with 100%.
Example Calculation for Click-Through Rate
If your campaign delivered 10,000 impressions and you receive 100 clicks, your Click-Through Rate is 1% .
Number of Impressions | 10,000 |
Number of Clicks | 100 |
Click-Through Rate | 1.00% |
How Is Click-Through Rate Tracked?
Click-Through Rate is a highly standardized metric and generally available from all platforms where advertising is being executed, including email marketing platforms, such as Hubspot, and digital advertising platforms, such Google Ads.
In addition, one of the easiest way to track CTR across all platforms, is to use a holistic measurement platform, such as Sellforte, which automatically consolidates all digital data into one platform and processes it for easy analysis. Below is an example of advertising channel -level tracking view from the Sellforte demo.
Click-Through Rate in the Media Metric funnel
Click-Through Rate is a performance ratio in the Media Metric funnel. Media Metric funnel is an abstraction of consumers' buying journey:
- Impressions measure how many people saw the ad
- Clicks measure how many people clicked the ad
- Conversions measure the number of purchases made by people clicking the ad (within a certain attribution window)
- Conversion value measures the total value of purchases made by people clicking the ad (within a certain attribution window)
Cost-efficiency metrics in the funnel include: Cost Per Mille (CPM), Cost Per Click (CPC), Cost Per Conversion, Return On Ad Spend (ROAS).
Performance ratios in the funnel include: Click-Through Rate (CTR), Conversion Rate, and Average Order Value.
How is Click-Through Rate used by Digital Marketers?
Click-Through Rate is used by digital marketers in following use-cases:
- Effectiveness Measurement: Digital marketers can compare CTR of different ads, campaigns and channels to evaluate how well they are driving engagement. A low CTR might indicate challenges in the creative, audience targeting, and other campaign paramenters.
- ROI deep-dive analyses: When analyzing why ROI of a channel or campaign has increased or decreased, digital marketer can analyze whether a change in CTR could be an explanatory factor for the increase / decrease.
What Influences Click-Through Rate?
Several elements can affect your CTR, as an example:
- Relevance & Targeting: Matching content or ads to user intent, interests, and demographics greatly improves click likelihood.
- Headline & Copy Quality: Clear, compelling titles and descriptions with strong calls-to-action drive more engagement.
- Placement & Visibility: Higher positioning in search results or ad slots usually leads to higher CTR due to greater visibility.
- Design & Trust Signals: Appealing visuals, mobile-friendly design, recognizable branding, and trust elements (like reviews) boost credibility and clicks.
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