Concept Of Click Through Rate
Click-through ratesfor banner ads have fallen over time. When banner ads first started to appear, it was not uncommon to have rates above five percent. They have fallen since then, currently averaging closer to 0.2 or 0.3 percent. In most cases, a 2% click-through rate would be considered very successful, though the exact number is hotly debated and would vary depending on the situation. The average click-through rate of 3% in the 1990s declined to 0.1%-0.3% by 2011. Since advertisers typically pay more for a high click-through rate, getting many click-throughs with few purchases is undesirable to advertisers. Similarly, by selecting an appropriate advertising site with high affinity (e.g. a movie magazine for a movie advertisement), the same banner can achieve a substantially higher CTR. Though personalized ads, unusual formats, and more obtrusive ads typically result in higher click-through rates than standard banner ads, overly intrusive ads are often avoided by viewers.
Brief
A ratio showing how often people who see your ad end up clicking it. CTR can be used to gauge how well your keywords and ads are performing.
CTR is the number of clicks that your ad receives divided by the number of times your ad is shown (called impressions).
Each of your ads and keywords have their own CTRs that you can see listed in your account.
A high CTR is a good indication that users find your ads helpful and relevant. CTR also contributes to your keyword's Quality Score which can affect your costs and ad position.
You can use CTR to gauge which ads and keywords are successful for you and which need to be improved. The more your keywords and ads relate to each other and to your business, the more likely a user is to click on your ad after searching on your keyword phrase.
 | AUTHOR BIO: This Post Is A Guest Post By Yogesh Mandge. He is Creator and Author of YM BLOG, loves to write about blogging and shares his experiences at his blog YM BLOG. |
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