CTR, or click-through rate, is the share of people who see your ad and then click it, worked out as clicks divided by impressions and shown as a percentage. Google's own example: 5 clicks from 100 impressions is a 5% CTR.
Google defines it as a ratio showing how often people who see your ad or free product listing end up clicking it. It's one of the first numbers you'll look at in any ad account, and one of the easiest to misread, so here's what it tells you, what it doesn't, and how it connects to Ad Rank and Quality Score.
The CTR formula, with a worked example
CTR = clicks divided by impressions, multiplied by 100
| Clicks | Impressions | CTR |
|---|---|---|
| 5 | 100 | 5% (Google's example) |
Take Google's numbers: 5 divided by 100 is 0.05, and multiplied by 100 that's 5%. The only rule is to use clicks and impressions from the same ad, keyword or listing over the same period. Mix a keyword's clicks with a whole campaign's impressions and the number means nothing.
Every ad, listing and keyword in your account has its own CTR, which is what makes it useful. You can see at a glance which ads people respond to and which they scroll straight past.
What a high CTR tells you
Google says a high CTR is a good indication that users find your ads and listings helpful and relevant. It's how you gauge which ads, listings and keywords are working and which need improving.
Google also explains what drives it: the more your keywords, ads and listings relate to each other and to your business, the more likely someone is to click your ad after searching for your keyword phrase. If your CTR is low, the first question is usually whether the ad matches what the person searched for.
Is there a good CTR?
Not a universal one. Google's own wording is that a good CTR is relative to what you're advertising and on which networks. That's why you won't find a benchmark number here. A CTR that's strong for one kind of keyword on one network can be weak for another.
The useful comparison is like with like: the same network, the same type of keyword, the same kind of ad, and your own figures over time. Is this ad doing better than the last one? Is this keyword doing better than last quarter? Those are questions CTR can answer.
How CTR feeds into Ad Rank
CTR doesn't just sit in a report. Google says it contributes to a keyword's expected CTR, which is a component of Ad Rank. Ad Rank decides whether your ads are eligible to show and where they appear. It's worked out using your bid, the quality of your ad and landing page, Ad Rank thresholds, how competitive the auction is, the context of the search and the expected impact of your assets and ad formats.
Google gives a simplified example. Imagine ads with Ad Ranks of 80, 50, 30, 10, -10, -30 and -35, and a minimum of 0 to show anywhere. The last three can't show at all. If the minimum to show above the search results is 40, only the ads at 80 and 50 can appear there. Google says the example leaves out some factors, but it shows why a stronger ad can earn a better position.
The catch: Quality Score isn't something to chase
This is the insight most CTR guides skip. Quality Score is Google's 1 to 10 rating at keyword level, and it's built from three components: expected CTR (how likely your ad is to be clicked when shown), ad relevance and landing page experience.
But Google is blunt about what it's for. Quality Score is a diagnostic tool. In Google's words, it's not an input in the ad auction, and it's not a key performance indicator and shouldn't be optimised or aggregated with the rest of your data. So pushing a keyword from a 6 to a 7 isn't a goal in itself. Use the score to spot which part, the ad, the relevance or the landing page, needs work.
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| Metric | What it tells you | Caution |
|---|---|---|
| CTR | How often shown ads get clicked | 'Good' is relative to what and where |
| Expected CTR | A Quality Score component that feeds Ad Rank | Estimated, compared over 90 days |
| Quality Score | A 1 to 10 diagnostic | Not an auction input, not a KPI |
Each component is rated Above average, Average or Below average, by comparing you with other advertisers whose ads showed for the exact same search over the last 90 days. That's why changing your keyword match types doesn't change Quality Score: it's based on historical impressions for exact searches. If you see a dash in the column, it means there weren't enough exactly matching searches to rate it.
How to use CTR, step by step
- Take clicks and impressions for the same ad, keyword or listing over the same period.
- Divide clicks by impressions and multiply by 100.
- Compare like with like: same network, same type of keyword.
- Improve ad relevance and landing page experience before obsessing over the number.
- Use the Quality Score columns only as a diagnostic, never as a target.
Once you know your click rate, look at what each customer costs with cost per acquisition.
When clicks aren't the point
Sometimes you don't want clicks at all. If your aim is for people to see your ad, Google describes viewable CPM bidding, where you pay for impressions that are seen. If your main goal is online sales or website visits, it points you to Maximize clicks or Maximize conversions. Pick the goal first, then decide how much CTR matters.
Click rate tells you about clicks, and CPM explains what showing the ad costs.
My verdict on CTR
CTR is a clue, not a goal. A high CTR on the wrong clicks just costs you more, because every click is one you pay for. So read it next to conversions, every time. If you can't see conversions yet, sort that first, and if you also advertise on Facebook and Instagram, here's how to set up conversion tracking for Meta ads.
If you want to lift CTR, test ads against each other rather than guessing. These A/B testing tools make it easier, and if you're building your first Google campaign, start with how to run a PPC campaign in Google Ads.
Frequently asked questions
What is CTR in simple terms?
CTR, or click-through rate, is how often people who see your ad end up clicking it. It's clicks divided by impressions, shown as a percentage.
How do you calculate click-through rate?
Divide clicks by impressions and multiply by 100. Google's example is 5 clicks from 100 impressions, which gives a 5% CTR.
What is a good CTR?
Google says a good CTR is relative to what you're advertising and on which networks, so there's no single benchmark. Compare like with like and against your own past results.
Does CTR affect Quality Score?
Yes. Expected CTR is one of the three Quality Score components, alongside ad relevance and landing page experience. But Google says Quality Score is a diagnostic tool and isn't an input in the ad auction.
