If you are a pay per click Marketer, you have no doubt heard of the term, “Click Through Rate” (CTR). This term gets mentioned quite often within PPC marketing and is a very important part of the pay per click (PPC) process. It could mean the difference between you spending $0.05c per click or $0.50c per click.

So what exactly is it? How does it work?

Click Through Rate (or CTR) is a method of measuring the success of your PPC advertising campaigns. The CTR is obtained by dividing the number of clicks on your ad, by the number of times the ad was shown on the PPC network, the number of impressions.

For example, if your ad was shown 100 times, that means your ad got 100 impressions. If only one person clicked on your ad, then your CTR would be 1%.

If your ad was shown 100 times and 20 people clicked on your ad, then your CTR would be 20%.

Click through is calculated by the number of clicks divided by the number of impressions and not by how many visitors you received. This is an important distinction because one person may have clicked on your ad 5 times, the CTR is about clicks and not how many visitors you received.

CTR is a very important area of PPC marketing, it has a direct affect on your advertising costs, because it is used to determine your quality score. This determines how much you will pay per click. Therefore the higher your CTR is, the lower your advertising costs will be due to a higher quality score.

This will allow you to pay much less for the top positions on the ppc network than even the advertising spots that appear below you!

So in PPC marketing your aim should be to increase your CTR by providing high a quality and meaningful ad text with product related keywords. A landing page with those keywords and a product description also with those keywords.

The idea is to create a targeted and compelling ad that “gets the clicks” Then providing a targeted landing page describing the product or service that directly relates to the ad
that was clicked on. Finally, the product looks like it’s going to deliver on what was promised throughout the process, and the product of course, should deliver.

Increasing your CTR by using the techniques above should have a dramatic effect on your PPC costs and allowing your advertising campaigns to appear in the top search results for a surprisingly very low cost.

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Category: Internet Marketing/Pay Per Click
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