CTR produces the effectiveness for leading to the success of pay-per-click advertising. CTR stands for “click through rate”. Recently we published an introductory article on CPA (cost per action) internet marketing.
“CTR is the metric which measures the number of clicks on the ads of advertisers per the number of impression”.
Impression is simply called page-views. For example today 1000 visitors visited your site. The impressions of your site are 1000 today. So impressions are simply that how much people visited your site. CTR is the ration of number of clicks on the ads per number of impressions.
The next question is that how CTR calculated. Simply to determine the CTR, divide the number of clicks with number of total page views. Let’s understand this concept with some examples.
There are 100 visitors visited a website. Out of them, only 05 visitors clicked on the ad. Now pageviews/impressions of that website are 100 but the number of click is only one. It means only 5 visitors clicked on the ad given on that website. So the CTR of that advertisement is only 5%. See here.
A high click through rate means a lot of users who clicked on the ads. So CTR is the rate at which PPC ads are clicked. In above example, it shows that only 5% people click on the ad and landed on ads main website.
A good click through rate is very clearly explained by Yahoo’s answer.
“The honest answer to the question is, “It depends.” Click-through rates are naturally going to vary from campaign to campaign, and even from keyword to keyword. Everything involved in the way your ad is displayed plays a part, from your ad copy to the ad’s ranking on the results page.”
Click through rate great matter because a good click through rate leads to the quality scoring. Quality score is the rating of Google in regard of quality and relevancy of your keywords and pay per click ads. A quality score depends upon the various factors including CTR, relevancy of keywords, and quality of landing page, ad text relevancy and the history of your AdWords account performance. But this is not about quality score.
When you succeed to achieve the high CTR, it means you are driving a large number of people towards your offer or ad. When more people will click on ad, it leads to the more sales. Some bloggers don’t consider it better for the business, because according to them, advertisers have to pay per every click.
If we see the concept of PPC and CTR impartially or neutrally, it is best advertising form for advertiser. For example if advertiser paying the $10 per click to search engine or publisher. But the sale of one product reaches to the $500. So how this is the better form of internet marketing. Higher click through rate leads to the best quality score. And best quality score is the signal or sign of success in PPC.
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