Business Advertising

CTR calculator

Ad spend

Impressions

Clicks

Conversions

Revenue

Click-through rate 2 %

2000 ÷ 100000 × 100

The rest of the funnel

CPM 10

CPC 0.5

CPA 10

Conversion rate 5 %

ROAS 5×

Profit 4,000

Revenue per click 2.5

Clicks ÷ impressions × 100

Click-through rate is clicks divided by impressions, as a percentage. Two thousand clicks from 100,000 impressions is a 2% CTR. It measures whether the creative earns attention, not whether the traffic converts.

How to calculate CTR

1 Enter impressions and clicks for the same placement and period.

2 Read the percentage.

3 Compare only against the same placement — search and display CTRs are not comparable.

4 Check the conversion rate too; a high CTR with a low conversion rate means the ad is promising the wrong thing.

A high click-through rate is not automatically good. An ad that overclaims will earn clicks and then lose them at the landing page, producing an expensive campaign with excellent CTR. The pairing to watch is CTR against conversion rate: both high means the ad and the page agree, high CTR with low conversion means the ad is writing cheques the page does not honour, and low CTR with high conversion usually means the targeting is narrow but correct and there is room to widen it.

Questions

What is a good CTR? −

Search ads often run 3–6%, display well under 1%, and email 2–5% of delivered. Compare within the same channel only.

How do I calculate CTR? +

Does a high CTR mean a good ad? +

Why is display CTR so low? +

Does CTR affect what I pay? +

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