Engagement rate refers to the measure of how actively and frequently users interact with a particular piece of content or a website. It is typically calculated by dividing the total number of engagements (such as likes, comments, shares, clicks, etc.) by the total number of impressions or followers, and then multiplying by 100 to get a percentage. A higher engagement rate indicates that the content is resonating well with the audience and generating meaningful interactions, which is crucial for building brand awareness, driving traffic, and fostering customer loyalty.