By Rob Basso on
11/30/2010 12:34 PM
What is CTR and how does it affect your Cost Per Click (CPC)?
Your Click Thru Rate (CTR) is calculated as follows:
Number of Clicks Received / Number of Impressions (times your ad is shown)
The CTR is an important Metric (unit of measurement) for your account because Google views higher CTR’s as indicators that your ads are more relevant to the keywords that people are using to search. For example, a well targeted keyword that shows a similar, well targeted advertisement is more likely to be clicked by a user and therefore have a higher CTR than a general keyword with a non specific advertisement. In turn, higher CTR’s (along with other factors) will mean lower CPC’s will have to be to show in the 1st position on Google...