How is Click-Through Rate (CTR) calculated?

Click-Through Rate (CTR) is a critical metric in digital advertising that measures the effectiveness of an ad in generating clicks from users. It is calculated by dividing the number of clicks an ad receives by the number of times the ad is shown, also referred to as impressions. This ratio is then multiplied by 100 to convert it into a percentage.

Using clicks over impressions allows advertisers to gauge how enticing their ads are to their target audience. A higher CTR indicates that a higher percentage of viewers are clicking on the ad, which is typically a sign of effective ad placement, compelling creative, and relevant messaging.

In this case, the selection of clicks divided by impressions precisely aligns with the established definition of CTR, confirming its validity and importance in assessing ad performance. The usage of the other formulas presented does not correspond to the calculation of CTR, as they reference different metrics or combine unrelated statistics.