Definition
CTR stands for click-through rate — the percentage of people who click on a link after seeing it. It is calculated by dividing the number of clicks by the number of impressions (times the link was shown), then multiplying by one hundred. If your ad appears a thousand times and fifty people click it, your CTR is five per cent. CTR applies to search results, paid ads, email campaigns, and any other context where something is displayed and a click is the desired action.
Why It Matters
CTR tells you whether your message is compelling enough to make people take the next step. A low CTR means people are seeing your content but not engaging with it — your headline, ad copy, or search listing is not giving them a strong enough reason to click. A high CTR means your messaging resonates with your audience. In paid advertising, CTR also affects your costs: platforms like Google reward high-CTR ads with lower costs per click and better positions. In SEO, a higher CTR on your search listing signals to Google that your page is relevant, which can improve your ranking over time.
Example
A retailer notices that their Google search listing for “organic dog food delivery” gets shown two thousand times a month but only receives forty clicks — a CTR of two per cent. They rewrite their meta title and meta description to be more specific and benefit-focused. The following month, clicks rise to one hundred and twenty from the same number of impressions — a six per cent CTR — without any change in ranking position.