Click-Through Rate (CTR)

Click-Through Rate (CTR) is a key metric in online advertising that measures the effectiveness of an ad campaign. It's calculated by dividing the number of clicks an ad receives by the number of times the ad is shown (impressions), then multiplying by 100 to express it as a percentage.

CTR = (Total Clicks / Total Impressions) * 100

A higher CTR generally indicates that your ad is relevant and compelling to your target audience. It's often used in conjunction with other metrics like Cost Per Click (CPC) to evaluate overall campaign performance.

On platforms like Facebook, you have different types of CTRs:

• General CTR: The percentage of people who see your ad and click on it (like, comment, link click, video play, etc.)
• Outbound CTR: The percentage of people who click on the link on your ad and went on your website.

The general CTR is good to know if your ad catches the attention of your audience.

The outbound CTR is good to know if your ad is converting well.