Click-through rate (CTR) is a key performance metric that quantifies the effectiveness of digital ads, email campaigns, and clickable elements on a website by measuring the ratio of clicks to impressions. It is calculated by dividing the number of clicks an element receives by the number of times it is shown, then multiplying by 100 to express it as a percentage. This metric provides insight into how well an advertisement or clickable link engages its audience and prompts them to take action.
A higher CTR indicates that the content or ad is compelling. Marketers use CTR to evaluate and optimize their campaigns, aiming to increase engagement rate and drive more traffic to their desired destinations. Regularly monitoring and improving CTR helps businesses enhance their digital marketing strategies, leading to better overall performance and higher conversion rates.