The formula for click-through rate is CTR = (Number of clicks ÷ Number of impressions) × 100%
By definition, CTR, or click-through rate, is the ratio of clicks to impressions of an ad creative, expressed as a percentage.
CTR measures the performance of your digital marketing campaigns. It shows how effective your ads or emails are. The fewer impressions you need for a click, the higher the CTR. Improving your ad CTR in Google Ads, Ads Manager (the advertising tool for Facebook and Instagram), and on many other PPC platforms, allows you to boost your ad performance and get more traffic at a lower cost.
Let’s try with an example. If your ad was shown 1000 times and received 20 clicks, you need to divide 20 by 1000 and multiply by 100%. So the CTR of your banner is 2%.
A similar approach is applied when you calculate the click-through rate for your email marketing campaigns. Here is how you can find your email click rate. CTR = (Emails clicked ÷ Emails delivered) × 100%
You need to take the number of clicks either of your creative or the whole campaign divided by the number of impressions and then multiply by 100%. CTR = (Number of clicks ÷ Number of impressions) × 100%.
According to WordStream, the average CTR in AdWords is 1.91% for search and 0.35% for display. Anything above these benchmarks can be considered a good CTR.