CTR (Click-Through Rate) is calculated as clicks / impressions x 100. It is a key indicator of ad relevance. A high CTR means your ad resonates with the audience. In Google Search Ads, a good CTR is above 5%; in Display or Social, above 1% is considered strong.
Your Google Ads ad was shown 10,000 times and received 450 clicks. CTR is 4.5%. After optimizing the headline and description, CTR rises to 7.2%, cutting CPC by 20%.