Which metric calculates the percentage of ad impressions that were clicked on?

The correct choice is the metric that calculates the percentage of ad impressions that were clicked on, known as Click-through Rate (CTR). CTR is a crucial performance indicator in digital advertising because it measures the effectiveness of an advertisement in generating interest and prompting action among viewers. It is calculated by taking the number of clicks an ad receives and dividing it by the number of times the ad is shown (impressions), then multiplying by 100 to get a percentage.

For example, if an ad received 100 clicks out of 10,000 impressions, the CTR would be (100 / 10,000) * 100, equating to a 1% click-through rate. This metric provides insight into how compelling and relevant an ad is to its target audience, influencing advertising strategies and budget allocations.

Other metrics like Cost-per-Mille (CPM) focus on the cost implications of advertising, measuring the cost for every thousand ad impressions. Conversion Rate measures how many of those clicks resulted in desired actions, such as purchases or sign-ups, which is more about effectiveness post-click rather than immediately after the ad is viewed. Engagement Rate may track interactions with the ad beyond clicks, such as likes, shares, or comments, offering insight into user engagement but not