What does the term 'Click-Through Rate (CTR)' refer to?

The term 'Click-Through Rate (CTR)' specifically refers to the ratio between the number of clicks on an advertisement and the number of times the ad is shown, or its impressions. This metric is important because it indicates how effectively an ad is engaging viewers. A higher CTR suggests that users find the ad relevant and compelling enough to click on it, which can lead to increased traffic and potential conversions. This ratio is usually expressed as a percentage, calculated by dividing the number of clicks by the number of impressions and then multiplying by 100. Understanding CTR is vital for evaluating the performance of ad campaigns and making data-driven decisions to optimize advertising strategies.