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PPC Glossary Terms: CTR

October 30th, 2008 by

CTR is an acronym for Click Through Rate and is a measurable benchmark that is used in PPC and other forms of advertising to determine the overall success of a campaign. For PPC advertisers, the CTR of an ad is the number of visitors that click a specific advertisement when compared to the total number of people that “view” that advertisement.

Obviously, it isn't possible to determine how many people actually view an advertisement, and so a click through rate is determined by the number of people that searched on the given keywords and visited the result page where an advertisement is displayed. In reality, unless an advertisement is displayed at or near the top of the sponsored listings section, only a relatively small percentage of people will literally view it.

The CTR of a PPC ad gives advertisers some invaluable information and it also determines the eventual bid price that will need to be paid when somebody does click that link. Poor CTR can usually be improved by writing better ad copy, using more targeted keywords, and improving the position of an ad by altering bid prices.

Some PPC advertising networks, like Google, use a Quality Score to help determine how good your ad and landing page copy is. The CTR of an ad campaign is considered when calculating its Quality Score. The higher the score and consequently the higher the CTR the less you will need to pay for a click on your advertisement. Controlling the CTR of any PPC campaign is, therefore, an important factor of optimising that campaign.

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6 Responses to “PPC Glossary Terms: CTR”

  1. Riley says:

    This is important for internet business to the site which has been designed well and good content so that CTR can be increased of that site for advertisement.

  2. Angelina says:

    First thing that search engine program have been taken to advertise the site like Google search engine ad words program’s CTR are high, Google search engine ad program would be good option.

  3. Rachel says:

    I think CTR would be more beneficial for new website which has been newly launched; it can return good revenue for website owner. CTR can indicate how much potential traffic comes to your site.

  4. Gabriella says:

    CTR rate should be high as much as possible. It means there is potential traffic is coming to site. Website owner should try to convert all the traffic into the business.

  5. Charles says:

    The CTR of a PPC ad gives advertisers some invaluable information and it also determines the eventual bid price that will need to be paid when somebody does click that link.

  6. [...] you’re new here, you may want to subscribe to our RSS feed. Thanks for visiting!Improving the CTR of a Pay Per Click advertising campaign helps to improve your return on investment and can also [...]