What does CTR measure in digital marketing?

Click-Through Rate (CTR) is a critical metric in digital marketing that measures the effectiveness of an ad in engaging users. Specifically, CTR quantifies the ratio of clicks on an advertisement to the total number of times the ad is displayed (impressions). This ratio is expressed as a percentage, indicating how many viewers clicked the ad after seeing it. A higher CTR signifies that the ad is compelling and relevant to its audience, thereby demonstrating its effectiveness in driving traffic to the desired destination, such as a website or landing page. Understanding CTR is essential for marketers as it helps them assess the performance of their advertising campaigns and optimize their strategies for better engagement and conversion rates.