Definition
CTR is the fraction of impressions that become clicks.
Formula
CTR = clicks / impressions
Example
If you got 2,000 clicks from 100,000 impressions, CTR = 2,000 / 100,000 = 2%.
How to use it
- Use CTR as a creative-market fit signal, but validate conversion quality and profit.
- Compare CTR within similar placements and objectives (feed vs search behave differently).
Common mistakes
- Optimizing CTR alone (without conversion quality).
- Comparing CTR across very different placements (feed vs search).
Why this matters
This term matters because it affects how you interpret performance and make budget decisions. If you use inconsistent definitions or windows, ROAS/CPA can look "better" while profit gets worse.
Practical checklist
- Write a 1-line definition for "CTR (Click-Through Rate)" that your team will use consistently.
- Keep the time window consistent (weekly/monthly/quarterly) when comparing trends.
- Segment results (channel/plan/cohort) before drawing big conclusions from blended averages.
- Use a calculator that references this term (e.g., Break-even CTR Calculator) to sanity-check assumptions.
- Read the related guide (e.g., CTR (Click-Through Rate): definition, formula, and how to improve) for context and common pitfalls.
Where to use this on MetricKit
Calculators
- Break-even CTR Calculator: Compute the CTR required to break even (and hit a target) given CPM, CVR, AOV, and contribution margin.
- Paid Ads Funnel Calculator: Model CPM -> CTR -> CVR to estimate CPC, CPA, ROAS, and profit per 1,000 impressions (with margin and variable costs).
- Break-even CPM Calculator: Compute break-even and target CPM from CTR, CVR, AOV, and contribution margin assumptions.
- Break-even CVR Calculator: Compute the CVR required to break even (and hit a target) given CPM, CTR, AOV, and contribution margin.
- Click-through Conversion Rate Calculator: Calculate click-through conversion rate (click-to-conversion CVR) and estimate required clicks for target conversions.
Guides
- CTR (Click-Through Rate): definition, formula, and how to improve: CTR explained: what click-through rate is, how to calculate it, and how to improve CTR without sacrificing conversion quality.
- Break-even CTR: required CTR at a given CPM (with buffer): A practical guide to break-even CTR: set creative CTR targets from CPM, CVR, AOV, and margin, then use them to diagnose pre-click performance.
- Paid ads funnel: CPM, CTR, CVR -> CPC, CPA, ROAS (with profit): A practical guide to the paid ads funnel: how CPM, CTR, and CVR drive CPC, CPA, ROAS, and profit - with formulas and common pitfalls.
- CVR (Conversion Rate): definition, formula, and how to calculate: CVR explained: what conversion rate means, how to calculate it correctly, and how to improve it without sacrificing scale.
- CPC (Cost Per Click): definition, formula, and how to calculate: CPC explained: what cost per click means, how to calculate it, and how CPC connects to CTR, CVR, and CPA.