Explain what is the significance of CTR and how do you calculate it?
CTR is the number of clicks that your ad receives divided by the number of times your ad is shown: clicks ÷ impressions = CTR.
For example, if you had 5 clicks and 100 impressions, then your CTR would be 5%.
A higher CTR means a higher Quality Score, which reduces your CPC and improves your ad rank. A remarkable CTR is not only the most important thing in AdWords, but it is also extremely important for other marketing channels. These include organic search, CRO, social media, and email marketing.
CTR is an important metric because it helps you understand your customers—it tells you what works (and what doesn’t work) when trying to reach your target audience.
A ratio showing how often people who see your ad end up clicking it. Clickthrough rate (CTR) can be used to gauge how well your keywords and ads are performing.