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Paid Marketing Definition

Click-Through Rate (CTR)

The percentage of people who see an ad or link and then click on it.

Full definition

Click-through rate is calculated as (clicks ÷ impressions) × 100. It's a key performance indicator for both paid ads and organic search results. In Google Ads, CTR directly affects Quality Score — ads with higher CTRs are rewarded with lower CPCs and better ad positions. In organic SEO, a high CTR in the SERP (relative to position) signals relevance to Google and can improve rankings. CTR is influenced by: ad copy and headline quality, relevance to the search query, use of ad extensions, brand recognition, and competitive landscape. Average CTRs vary significantly by industry, position, and campaign type.

Real-world example

An e-commerce brand improves its Google Shopping ad titles from generic product codes to descriptive titles including size, colour, and key features, increasing CTR from 1.2% to 3.8%.

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