Click-through rate or CTR is a way of measuring the success of an online advertising campaign. A CTR is obtained by dividing the "number of users who clicked on an ad" on a web page by the "number of times the ad was delivered" (impressions)
CTR = Clicks/Impressions*100
For example, if a banner ad was delivered 100 times (impressions delivered) and 1 person clicked on it (clicks recorded), then the resulting CTR would be 1 percent (1%).
A low CTR may point to poor keyword performance, indicating a need for ad or keyword optimization. Therefore, you can use CTR to gauge which ads and keywords aren't performing as well for you and then optimize them.
A high click-through rate may not assure a good conversion rate, and the two rates may even share an inverse relationship. An advertisement geared towards curiosity clicks will result in fewer sales, percentage-wise, than an advertisement geared towards qualified clicks.
CTR is also used to determine your keyword's Quality Score. Higher CTR and Quality Score can lead to lower costs and higher ad position.
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