TLDR: Click through rates in a nutshell
Click through rate (CTR) tells you how many people clicked on your ad after seeing it. Basically, is your ad getting noticed or ignored? It’s calculated by dividing clicks by impressions, and it’s a great metric to include in reports. A high CTR usually means your ad’s message is landing well; a low one could mean it’s time to rethink your strategy. CTR is great for spotting trends, testing creatives, and comparing campaign types.
What does CTR stand for?
So, what exactly is CTR? It stands for click through rate, and it’s basically a way of measuring how many people actually clicked on your ad after seeing it. Think of it as a quick check on whether your ad is catching attention or just blending into the background.
How do you calculate click through rate
So, what is CTR? At its core, it’s a pretty simple calculation:
CTR = Clicks ÷ Impressions
If your ad is shown 10,000 times (impressions), and 500 people click it, your CTR is 5%. Simple math… but it’s hugely telling.
Why should you care about CTR?
Click through rate is more than just a metric in your report, it’s an insight. It tells us how relevant and engaging our ad is to the audience who sees it. A high CTR? Great! That probably means your message is landing. A low CTR? Time to investigate and change your messaging.
For example, if your brand campaign CTR drops suddenly, that could be a sign your competitors have launched more compelling ads or are bidding on your brand terms. We’ve seen clients face this firsthand when a retailers competitors began bidding on their brand name, undercutting their CTR almost overnight.
As Rebekah Waller, our Senior Performance Marketing Manager, puts it:
“If the click through rate was slowly declining, whether you’re a brand, an agency or in-house, it suggests your competitor’s copy is more compelling. That’s when you need to review your ad copy and ad extensions.”
What are the best use cases for click through rates in marketing reporting
CTR shines brightest as a contextual metric. It’s especially helpful when looking at:
- Performance trends over time (is engagement going up or down?)
- Creative testing (which ad formats drive more engagement?)
- Campaign types (e.g. brand vs. generic keywords)
To benchmark effectively, we recommend using WordStream’s industry CTR averages. This gives you a useful point of comparison, especially when reporting to clients or evaluating new campaigns.
For agencies
CTR can serve as a quick sense-check. If it’s dropping, it might mean your strategy or creative direction needs tweaking. Think of it as your “operational compass.” If the needle’s pointing down, it’s time to dig in.
For clients
Clients want to know their campaigns are working. CTR helps show if your ads are cutting through the noise. If a high CTR isn’t translating to conversions, it’s a sign to dig deeper into landing pages or product offerings.
For In-house teams
You’ve got skin in the game. CTR gives you real-time feedback to optimise campaigns without waiting for long-term conversion data. Use it to catch issues early, test creative ideas, or respond to competitive threats.
Where does CTR fit in with ASK BOSCO®?
At ASK BOSCO®, we see CTR as an important metric when you’re reporting a campaigns performance. It’s not the end goal (that’s usually conversions or revenue), but it gives us a strong signal about what’s working, and what might need adjusting.
Website performance
CTR can be easily viewed in ASK BOSCO®’s website overview report, broken down by individual marketing channels. It complements core metrics like conversions and revenue, giving more colour to your data story.
Paid search reports
In the paid search overview report, you can track CTR at the campaign level. This helps when launching new strategies, like a “bestsellers” campaign, by comparing performance to existing campaigns. It’s also a great tool for understanding if creative elements or targeting changes are resonating with users.
In fact, we’ve used ASK BOSCO® to overlay CTR with impression share over time to diagnose competitive pressure. When impression share dips because big retailers start bidding on brand terms, we often see CTR follow suit.
Final thoughts
Click through rate might not be the flashiest metric in your report, but it’s one of the most revealing. It gives you a pulse on performance and a pathway to optimisation. Whether you’re fine-tuning ad copy, testing new creative, or simply comparing campaigns, CTR is a metric you can’t afford to ignore.
As always, make sure to pair it with other key metrics, especially conversion rate, to get the full picture. After all, clicks are great… but sales are better. For more insights and tailored strategies for your click through rate and reporting, please get in contact with our team, at ASK BOSCO®, or you can email us at, team@askbosco.com.
