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Saturday, July 10, 2010

What is CTR and How google Calculate CTR?

CTR = Click Thru Rate
CTR measures the effectiveness of an advertisement and it has this CTR formula:

Clicks / Impression x 100 = CTR

 
Example:
Your page impression is 79 and ads clicks is 3 then your CTR is 3.80%.
3 / 79 x 100 = 3.80 CTR

Other similar terms include:
response rate, click-through ratio.

Example
A 1.0% CTR means that for every 100 impressions, there is 1 click.
 
Monitoring CTR
You should measure each ad's CTR regularly and make appropriate changes to improve its CTR. An ad with a low CTR should be modified, or even removed from the rotation. An evaluation should be performed when an advertisement gets at least 1,000 impressions. If this impression threshold is met and it still has a low CTR, less than 0.1%, it should be checked for the use of headings, hot spots, an appropriate call to action and other effectiveness factors.

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