What Is Click-Through Rate?
Click-Through Rate is a digital advertising metric that shows the proportion of impressions that result in clicks. Advertisers calculate it by dividing clicks by impressions and expressing the result as a percentage. The metric indicates how strongly an ad attracts attention from people who see it in a search result or placement.
Quick Facts About Click-Through Rate
Category
Advertising performance metric
Used for
Assessing ad engagement
Common confusion
It does not measure completed enquiries
Also called
CTR, Click Through Rate
Often discussed with
Google Ads Management
Key Takeaways About Click-Through Rate
- It measures response to an impression, not completed leads.
- Ad wording and search relevance can affect the result.
- Click-Through Rate does not equal conversion rate.
How Click-Through Rate Works
Click-Through Rate connects an ad's visibility with the clicks it receives. An impression occurs when an ad appears, while a click occurs when someone selects it. The calculation compares those two actions, so the result reflects how often the ad earns attention from people who see it.
Related glossary terms: Impression Share, Conversion Funnel, Search Engine Results Page.
Search term relevance, ad copy, position and the offer can all influence the result. Google Ads reports the metric for campaigns, ad groups and individual ads. A strong result does not prove that traffic will become leads, because the landing page and enquiry process affect what happens after the click. Conversion Rate measures a later action, such as a completed enquiry, and should be read separately.
Expert Note
When we manage Google Ads campaigns, we check Click-Through Rate alongside search terms, ad relevance and landing page behaviour. We look for meaningful changes after refining targeting or ad copy. Our team also separates clicks from enquiries, so engagement does not get mistaken for lead performance.
Click-Through Rate in Practice: A Real-World Example
A Brisbane electrician runs a Google Ads campaign for switchboard upgrades. Click-Through Rate shows how often people select the ad after seeing it, while the resulting enquiry data shows whether those visits produce useful leads.
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