Which metric indicates the effectiveness of an ad's targeting?

The Click-Through Rate (CTR) is a crucial metric that indicates the effectiveness of an ad's targeting. This metric reflects the percentage of people who clicked on the ad after seeing it. A high CTR suggests that the ad is well-targeted, capturing the interest of the right audience. It implies that the ad's message, visuals, and placement resonate sufficiently with users, leading them to take action.

When targeting is on point, the audience is more likely to find the ad relevant, resulting in a higher number of clicks relative to the number of impressions. Conversely, a low CTR may suggest that the ad is not reaching the appropriate audience or that the ad content is not compelling enough, indicating potential issues with targeting effectiveness.

While other metrics like impressions, conversion rate, and CPC provide valuable insights into ad performance and budget management, they don't specifically gauge how well the ad reaches and engages its intended audience compared to CTR.