What it is
A forecast, not a historical count.
Expected CTR is not your historical click-through rate. It is Google’s estimate of what your CTR would be if your ad appeared in the top position, adjusted for every factor that historical CTR alone cannot control for.
Expected CTR is one of three components that combine to produce Quality Score, alongside ad relevance and landing page experience. Google’s Quality Score documentation is specific about the distinction between historical CTR and expected CTR: historical CTR counts clicks divided by impressions, but expected CTR normalises that figure for ad position, device, time of day, and query context. Two keywords with identical historical CTR can carry different expected-CTR ratings if one has been running in position 1 and the other in position 3.
The commercial relevance is that expected CTR is the Quality Score component operators have the least direct control over on a short time horizon. Ad copy changes affect expected CTR, but the rating will only re-score once Google has observed enough clicks on the new copy to update the underlying estimate. In accounts with lower click volume, this takes weeks; in accounts with high volume, it takes days.