According to Google, click-through rate is an important metric in understanding how effective your current keywords and present ads are.
By knowing your click-through rate, you will know whether your ads are actually doing their job in leading search, social, and email users into your site.
What you want, of course, is for your advertising money to be put to good use. The higher the CTR, the higher is the probability of your ads’ relevance and usefulness.
So, how do you calculate for an ad’s click-through rate?
To calculate CTR, you need to divide the number of ad clicks to the number of your ad’s impressions (the number of times your ad is seen by your target audience). For example, your ad generated 10 clicks and had 200 impressions: