How to Calculate Click Thru Rate (CTR) in Marketing
Learn how to calculate Click Thru Rate (CTR) in marketing using this free marketing calculator. Click Thru Rate (CTR) is used by marketers to understand marketing effectiveness and engagement, depending on the goal.
Definition: Click Thru Rate (CTR)
Click Thru Rate (CTR) is calculated by first taking the sum of all clicks associated to advertising spend (Clicks). Next, sum all impressions across the campaign or advertising being measured (Impressions). Finally, calculate CTR by dividing Clicks by the total Impressions. Multiply this number by 100 to express it as a percentage.
Generally, a high CTR is better. Additionally, this performance metric is typically expressed as a percentage. While high CTRs are better, high is relative. Keep in mind it is not uncommon that the majority of visitors do not click.
Formula to Calculate CTR
To calculate CTR, sum all clicks associated to the ad spend for the campaign or advertising being measured. (Call this Clicks.)
Next, sum all impressions for the particular campaign, ad placement, or whatever is being measured. (Call this Impressions.)
Finally, divide Clicks in the numerator by the denominator of Impressions. Multiply by 100. The final result is the Click Thru Rate (CTR). It is typically represented as a percentage figure.
CTR Formula and Example
CTR = Clicks / Impressions
Example:
0.67% CTR = (10 Clicks / 1500 Impressions) * 100
In the above example, the advertiser has delivered 1500 impressions for the measured advertising efforts, and 10 clicks were able to be attributed back to the Ad Spend. (Remember: it’s not uncommon to have a low click:impression ratio. This brand could expect 0.67% of impressions to be clicked on in future advertising with similar campaigns.
How to Calculate Click Thru Rate (CTR) in Marketing
Why is CTR Important?
CTR serves as a good indicator for whether or not an ad is working effectively. If an ad is delivered and people aren’t clicking, that could spell trouble for the campaign’s ROI.
Exception: there are some cases where the goal of a campaign could be achieved even without clicks. The best example would be top-of-funnel awareness campaigns. These campaigns have a goal of generating brand awareness and recall.
Brand recall doesn’t necessarily require audiences to interact with an ad. Often, simply viewing an ad is enough to boost brand recall. However, clicking tends to be that next step in the funnel, indicating a user has moved downward.
Depending on the goal for the campaign (and where the user is at in the funnel), marketers can use CTR as a way to measure how engaged their audience is with a given ad. High CTRs may suggest stronger audiences, creatives, etc.
Like much in the world of analytics, it all relative. Marketers can use high CTRs as indicators for necessary improvements. For instance, when CTR is high but ROAS is struggling, it might mean the ad creative catchy but not communicating the right message. For instance, users may click on an ad for 10% off only to discover that 10% is via mail-in rebate.
CTR is one of the most fundamental performance metrics for digital marketers. It can be applied in many use cases to help deliver stronger performance for any type of campaign where clicks are in play.
