What is click-through rate (CTR), and why does it matter?

Short answer

Click-through rate, or CTR, is the share of people who click your ad after seeing it. It equals clicks divided by impressions. A higher CTR usually means your ad matches what people searched. Expected CTR is part of Quality Score, but a high CTR only matters if those clicks turn into leads.

In this answer

01The CTR formula
02Why CTR matters
03What changes CTR
04When high CTR is bad

The CTR formula

1,000 people see your ad

1,000ImpressionsTimes your ad showed
60ClicksPeople who clicked
6%CTR60 divided by 1,000

Why CTR matters

Quality Score rests on three parts, and expected CTR is one of them. The other two are ad relevance and the landing page. Ads that people click more tend to earn better positions at lower prices. CTR also shows whether your message matches the search.

What changes CTR

Headlines that repeat the searched service
Your city or service area in the ad
Assets like sitelinks and call buttons
Ad position on the page
Keywords that match what you offer

When high CTR is bad

An ad that promises "cheap" or "free" can draw clicks from people who will never pay your prices. CTR rises while leads fall. Compare CTR with conversion rate, never alone.

Rule of thumb. CTR varies by position, device, campaign type and brand vs non-brand. Brand searches get very high CTRs, and display ads get low ones. Compare a campaign with its own past, not with a different type.

Good example. A locksmith adds "24/7, 20-Minute Arrival" to headlines. CTR rises and so do calls.

Bad example. A locksmith adds "Cheapest in Town." CTR doubles, but callers balk at the real price.

CTR feeds into Quality Score. Our Google Ads management tests ads for leads, not just clicks.

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