What is CTR?
CTR (click-through rate) is the share of ad impressions that led to a click. It is clicks divided by impressions, times 100. It shows how well an ad turns a view into a click.
The formula
Leave one field empty and it is worked out from the other two. With all three filled, CTR is worked out from clicks and impressions.
Worked example
1,200 clicks from 120,000 impressions is a 1% click-through rate, or 10 clicks per thousand impressions.
Using it on Meta ads
At the same CPM, a higher CTR means a lower cost per click. Use link-click CTR in Ads Manager, since all-clicks CTR also counts likes and taps that never reach your site.
A CTR that falls on an ad that has run for weeks can mean the people seeing it have seen it before. Check frequency in Ads Manager before you change the audience.
Questions
Link clicks, if what you want is visits to your site. All clicks also counts likes, profile taps and taps to expand the text, which makes CTR look higher than the traffic it brings.
At the same CPM, yes: more clicks from the same impressions means a lower cost per click. It does not promise sales, so read it beside the conversion rate on your site.
No. CTR counts clicks per impression, which happens in the ad. Conversion rate counts purchases or leads per click, which happens on your site.