Click-Through Rate (CTR): How to Calculate and Improve It

What Is Click-Through Rate (CTR)?

Click-through rate (CTR) is the percentage of people who click through to your site from links within emails, social media ads, or search ads compared to the total number of people who saw the ad.

How to Calculate Click-Through

The CTR formula varies slightly depending on the channel:

For email marketing, theCTR formula = (Number of unique clicks/ Number of emails delivered) x 100

Where unique clicks are the number of times someone clicks on at least one link within your email.

For example, let's say you send a welcome email campaign, similar to the HelloFresh one below, to 50,000 subscribers.

Possible clicks could come from the:

• "See Recipes" link
• "Sign Up" link (likely less relevant in a welcome email, but possible)
• "Get Started" button

Let's assume 2,000 individual subscribers clicked on at least one of the links in the email. 

The CTR for this email campaign would be (2,000 / 50,000) x 100 = 4%.

Image Source: InboxFlow

For paid social advertising and paid search ads, CTR is the number of people who click on your ad (clicks) divided by the number of times it is shown (impressions) in their social feed or search engine results pages (SERP).

Let’s look at the ad below, identified by the "Promoted" label.

Let’s say it received 1,000 ad impressions and 50 clicks. The CTR for this ad is (50 / 1,000) x 100 = 5%.

We’ll illustrate CTR for paid search ads with a common scenario: 

Pay-per-click (PPC) advertising on Google Ads.

Typing “dog food” into Google delivers this sponsored result: 

Let’s say it appears in the SERP 10,000 times per week, and 200 people click on it that week. That’s a 2% CTR. 

Google Ads provides an easy way to monitor your individual campaign CTRs.

Sign into your Google Ads account. Then, click "Campaigns" under “Campaigns” in the left-hand menu. 

Scroll down to the "CTR" and "Viewable CTR" columns, organized by campaign. "CTR" measures the percentage of clicks relative to all ad impressions. "Viewable CTR" measures the percentage of clicks from impressions that meet the viewability standard (ad visible for a minimum time). 

By excluding impressions that were likely not seen, "Viewable CTR" provides a more accurate measure of ad effectiveness.

Why Is Click-Through Rate Important?

Understanding CTR is important because it shows how effectively your ads capture and convert the interests of your target audience. 

A high CTR indicates that your campaigns target the right audience and encourage them to visit your site. And move them closer to becoming clients

Effectively Measures Audience Engagement

CTR is a key indicator of how well your ad copy aligns with your target audience's needs. 

Like in our earlier example:

"100% Natural Raw Dog & Cat Food" directly appeals to pet owners seeking healthy and natural food options. 

When your ad copy matches user search intent—whether the user is seeking information, comparing options, or ready to buy—it’s more likely to grab attention and earn clicks.

By consistently monitoring and optimizing search CTR, you can ensure your ads connect with your audience, meet their needs, and drive qualified traffic to your site.

Further reading: 16 Effective Ad Copy Examples (& Why They Work)

Supports A/B Testing

CTR is a crucial metric for measuring A/B tests, or split testing. 

A/B tests involve comparing two versions of a webpage, email, or other digital marketing asset. To determine which performs better.

An A/B test could be as simple as comparing a red CTA button in an email campaign to a blue one.

By tracking the CTR for each variation, you can identify which version resonates better with your audience and drives more clicks—increasing your CTR. 

Improves Quality Score

CTR directly influences your Quality Score. Platforms like Google Ads use this metric to evaluate the relevance and quality of your ads.

Like a report card. 

Quality Score is based on three components:

• Expected CTR: How likely users are to click on your ad
• Ad relevance: How well your ad addresses the need or question behind the user's search (also known as search intent)
• Landing page experience: How relevant and useful your landing page is to users who click on your ad

A higher Quality Score means better ad placements and lower costs because Google favors ads that provide a good user experience.

To improve your Quality Score:

• Align your ad copy and landing pages with user search intent
• Ensure your ads deliver exactly what users are looking for

In comparison, a low Quality Score can result in your ads being shown less often or costing more per click.

By focusing on ad relevance and optimizing your landing pages for search intent, you can create a better user experience and increase your ad performance.

What’s a Good Click-Through Rate?

A "good" or "bad" CTR for search ads depends on multiple factors, but benchmarks can provide useful insights to estimate ROI. 

WordStream’s ad benchmark report provides in-depth figures that outline average CTRs for search advertising across many industries:

Most industries in WordStream's data have CTRs in the 6%-7% range.

The industries with the highest CTRs are Arts & Entertainment (11.78%), Sports & Recreation (10.53%), and Travel (10.03%).

But a high CTR doesn’t always indicate a successful ad. 

Let’s explore why.

A High CTR Isn’t Always Good

You could be wasting your ad budget when a high CTR doesn’t result in high conversions. 

Suppose you own a pet store specializing in premium dog food. And you run a search ad like this: 

It may attract a lot of clicks because of the 30% discount.

But there’s a problem.

Someone who owns a cat might click on your ad. And expect to buy premium cat food. 

Although your ad says pet food, your landing page only offers dog food, so the cat owner leaves without making a purchase.

In this scenario, a high CTR can cost you more money than it makes. Because your products don’t meet users’ expectations when they click on an ad.

Let’s look at how to increase your CTR to lead to more conversions.

How to Improve CTR for Search Ads

1. Find the Right Keywords

Keyword research helps you uncover search terms that align with user search intent. Ensuring your ads are relevant to what searchers are looking for.

For example, someone searching for “how much food to feed my dog” is likely looking for general information on portion sizes. 

Google recognizes the informational search intent and serves results to match:

Creating a search ad for your premium dog food targeting this keyword wouldn’t make sense—as it doesn't align with the user’s intent.

You can find relevant keywords for your ads with the Keyword Magic Tool. 

First, open the tool and enter a seed keyword (a broad search term) related to the type of ad you want to create.

Select your target location and click “Search.”

You’ll see a list of keywords related to your seed keyword. 

But since you're running a PPC campaign to increase sales for the dog food you carry, you’ll want to identify keywords with commercial and transactional intent. That means searchers are interested in comparing brands or products.

How?

Under the “Intent” drop-down, select “Commercial.”

You’ll then see keywords related to “dog food” that have commercial intent. That number is now 12,000.

Depending on what types of dog food you’re promoting, you might want to choose one of the suggested groups or subgroups in the left column. 

You can also filter the data to find keywords that have a low cost-per-click (CPC). Click the “CPC” (USD)” filter, add your custom range, and click “Apply.”

You’ll then see a list of keywords with a CPC that falls within the range you applied.

This data can help you identify relevant keywords with a lower CPC. Which can be valuable for managing your search advertising budget effectively while still reaching a relevant audience.

2. Write Compelling Ad Copy with a Strong CTA

Compelling ad copy effectively communicates your product or service's value. And entices users to click.

A search ad is typically made up of a headline and description line. Like this:

How can you write good ad copy for your headlines and descriptions?

Use persuasive language to highlight unique selling points. And include strong CTAs to encourage users to click on your ad.

For example, let’s take a look at ads related to the term “dog food” again:

These ads contain copy designed to incentivize customers:

• “Get Started With 75% Off” 
• “Fresh meals tailored to your dog’s profile”
• “Get More For Your Money With Our Tailor-Made Kibble Blend”

This type of language will ultimately help to increase an ad’s CTR.

But tailoring your copy and CTAs to specific audience segments can further improve their effectiveness. 

For example, consider using a tool like One2Target to analyze your audience and improve your ad relevance.

To do this, enter your domain and then click “Analyze.”

Let’s use the tool for the Petco domain:

The tool will generate a dashboard with valuable insights about your audience, including demographics, socioeconomics, behavior, and more.

For example, for Petco's audience worldwide, the demographic breakdown shows:

• Nearly 20% of users are between the ages of 25-34 and 55-64.
• A gender split of 64.04% female and 35.96% male.

Knowing the age and gender distribution of your audience can help you tailor the language and tone of your search ad CTAs. 

If your audience includes two age groups of similar size, like Petco’s (25-34 and 55-64), write ad copy that appeals broadly to shared priorities.

Use inclusive language that highlights universal themes, like pet care, health, and trust, avoiding tones that are too casual or formal.

Here’s an example of a search ad tailored for Petco’s audience:

You can also use the "Behavior" tab in One2Target to gain insights into your audience's top interests, preferred devices, and most used social media platforms. 

For Petco’s audience, interests are heavily skewed toward:

• Online Services (100%)
• Mass Media (99.97%)
• Publishing (99.27%)
• Retail (99.08%)

These insights suggest that Petco’s audience is highly engaged with digital platforms and values online content and shopping-related services.

Knowing this info could lead you to:

• Focus on CTAs that emphasize digital convenience, such as “Shop from the comfort of your home—free returns available”
• Create e-commerce-focused campaigns showcasing online shopping perks or loyalty programs, such as “Exclusive Online Deals—Shop Petco Today”
• Target platforms where mass media and retail content are consumed, ensuring your ads are seen in relevant digital spaces

By tailoring your ad copy and CTAs to match audience interests, you can improve ad relevance, boost engagement, and increase CTRs.

3. Expand Search Ads with Assets

Assets are additional content, such as images and sitelinks, you can use to expand your search ads and give people more reasons to click on your ad.

For example, sitelinks (previously called sitelinks extensions) are additional links in your PPC ads that take people directly to specific pages on your website.

Sitelink assets improve the visibility and appeal of your ads—increasing the chance of a higher CTR.

Here’s an ad for the keyword "dog food" with sitelink assets:

To add sitelinks to your ads, click “Assets” then “Assets.”

Next, click the blue plus button.

And click "Sitelink."

Choose what ads can display these sitelinks (account-level, campaign-level, ad group). And create your sitelink text.

Then click "Save" to add your sitelinks to your list of assets.

Image assets are visual elements you can add to your search ads to make them more visually appealing and engaging. Compared to plain text search ads, image assets increase the average CTR by 6%.

For example, here’s what an image asset could look like in search results for a travel company:

To add images to your ads, click the same blue plus button, select “Image,” and follow the instructions:

• Choose an image source. Select from suggested images (recommended by Google based on your content), your asset library, images on your device, your website or social account images, or free stock images provided by Google.
• Crop and format your images. Use the editor to adjust images to the required aspect ratios (1:1 for square, 1.91:1 for landscape).
• Preview and save. Review your images in the preview pane and click “Save” to add them to your campaign or ad group.

4. Analyze Your Competitors

Analyzing your competitors can also help you increase your CTR on your search ads.

By understanding their strategies, you gain valuable insights into:

• Keyword targeting: See which keywords your competitors are bidding on and identify potential opportunities for your campaigns
• Ad copy & messaging: Analyze the language and tone they use to attract clicks and identify areas where you can differentiate yourself

Semrush's Advertising Research tool provides a wealth of competitive intelligence to help you improve your CTR in your search ads.

To get started, enter a competitor's domain, select the target country, and click “Search.”

You'll then be taken to the “Positions” report, where you'll see a dashboard packed with information on your competitor's paid search performance. 

At a glance, you'll see:

• Keywords: The total number of keywords where the domain was found with a PPC ad ranking
• Traffic: The estimated monthly traffic coming from these paid keywords
• Traffic Cost: The estimated price of paying for the PPC ads to rank in the positions found

This provides a quick snapshot of the scale of your competitor's PPC efforts and their estimated investment.

But let’s say you want to find exactly what keywords your competitor is bidding on.

Scroll down to “Paid Search Positions.” 

Here, you’ll find a table containing columns including:

• Keywords: The specific search terms your competitors bid on in their ads
• Pos. (Position): Their ad's average position for that keyword
• Block: Indicates whether the ad is shown above or below the organic search results
• Volume: The estimated monthly search volume for that keyword
• CPC: The average cost per click for that keyword
• URL: The landing page the ad directs users to when clicked
• Traffic: The estimated percentage of traffic the ad receives for that keyword

This table reveals insights into your competitors' PPC strategies: their prioritized keywords, ad performance, and landing pages.

For example, sorting by CPC shows HelloFresh bidding on low-competition keywords such as: 

• "prep weekly meals"
• "high protein veg diet plan for muscle gain" 

As a competitor, you could target similar untapped keywords or outbid them on existing ones.

Are you curious about your competitors' ad copy?

The “Ads Copies” report reveals their headlines, their descriptions, the keywords triggering each ad, and what landing page they’re sending people to.

The “Ads Copies” report automatically organizes ads by their reach, placing those targeting the most keywords at the top. 

Click on an ad's blue link to visit its landing page or on the blue keyword count tab to see a detailed table of the keywords triggering that ad.

Ads with a high keyword count likely perform well for your competitors. Studying these ads' messaging calls to action and overall tone can inspire you to improve your campaigns.

You can also use the "Competitors" report to uncover even more rivals in the same paid search ad space.

The “Competitive Positioning Map” graph plots the competitors by paid keywords and search traffic. 

Below this graph is a “Paid Competitors” table listing all competitors by competition level with the following columns:

• Com. Level (Competition Level): Calculated based on the number of keywords each competitor targets and has in common
• Common Keywords: Number of shared paid keywords
• Paid Keywords: Total keywords they're bidding on
• Paid Traffic: Estimated monthly traffic from paid ads
• Paid Traffic Price: Estimated monthly ad spend
• SE Keywords: Number of organic keywords they rank for

Focus on competitors with high competition levels and significant keyword overlap—they're likely targeting your audience. Analyze their ads for inspiration for your campaigns.

Get the Most Out of Your PPC Ad Spend

Understanding CTR for search ads is essential for seeing how well your campaigns are performing. 

But you can do more to improve the effectiveness of your campaigns.

Learn the fundamentals in our free PPC Fundamentals Course. 

Ready to unlock the full potential of PPC?

Enroll in our free PPC Fundamentals Course with Joel Bondorowsky. 

Here's a glimpse of what you'll learn:

• PPC basics: Grasp the essentials of PPC, including platforms, channels, and campaign structures
• Keyword research and ad creation: Master finding profitable keywords and crafting compelling ad copy
• Campaign setup and management: Learn how to set up and manage campaigns across various PPC platforms
• Bidding strategies and optimization: Discover how to optimize your bids for maximum ROI
• Landing page optimization: Create landing pages that convert visitors into customers

You can also explore our free PPC Advertising Toolkit, which will help you plan, analyze, and improve your Google Ads campaigns.