What is the formula for calculating click-through rate (CTR)?

The formula for calculating click-through rate (CTR) is derived from evaluating the effectiveness of an online ad or a link in generating traffic. CTR is calculated by taking the number of clicks an ad receives and dividing it by the number of impressions (the number of times the ad was shown). This gives a clear percentage that indicates how often people click on the ad after seeing it.

Choosing clicks divided by impressions correctly highlights that CTR is a measure of engagement and interest from viewers, reflecting the relevance and appeal of the ad content to the target audience. A higher CTR indicates a successful campaign where ads resonate well with viewers, prompting them to take action by clicking.

In contrast, other potential formulas provided in the choices do not accurately represent the calculation of CTR. For instance, impressions divided by clicks or interactions divided by clicks do not measure the same relationship that CTR assesses, which is the number of users taking action (clicks) relative to those exposed to the ad (impressions). Consequently, understanding how CTR is calculated aids marketers in optimizing their advertising strategies to enhance performance.