CTR is one of the metrics that Google uses to estimate your AD earnings.
People tend to say that understanding the principle of the metric CTR is quite irrelevant and you should be focusing on your CPC, however this in many cases is not true.
CTR stands for “Click Through Rate” and basically in a nut shell, this stands for the number of impressions in relation to the number of clicks on your ads.
Out of the number of times your search result or ad is shown to a visitor, it stands for how often users click the advertisement or ignore it. This metric is just as important to your CPC because it’s important for you to understand each metric and how they come together and estimate your final earning – the metric would not be in your Adsense reports if it didn’t do anything.
CTR% = No. of clicks * 100 / No. of exposures
CTR = No. of clicks / No. of exposures
The CTR is the number of times an ad on your website/blog is clicked, then it’s divided by the number of times a page or ad unit is viewed. Or in any other words this may look more clear for some of you, it’s basically the ratio between the number of page views and number of clicks on the advertisement.
So now you have an idea what it is, you’re probably wondering: How will CTR effect my earnings?
CTR is important, I will always stress to everyone to understand all the metrics that Adsense supplies you with. I made a very popular mistake hundreds of people do every day – clueless to the advertising world, I turned to Google and wasn’t exactly taught HOW this metric could effect my earnings, there were hundreds of posts saying what it did, but none of them teaching you how to improve your earnings or even worse – see your earnings plummet!
If you have ads on your website/blog and it is viewed by 100 people a day, and 10 people clicked on your ad, then your CTR rating percentage (which is above) would be 10%.
So therefore adding the two metrics together CPC and CTR, the higher the CTR percentage means the better earnings you will gain from your advertisement. Therefore following Google’s “Recommended” ad sizes on your account is important. The way you place your ads can earn you money or can not get you any at all.
Making your ads stand out the most – maximize your earning potential!
- Place the ad in a view able ad but at the same time not constructive – over lapping your content, links, share buttons and so on…
- Adsense allows you to have 3 ads per site – make the most of them and add all three.
- Test the recommended sizes that Google suggests for each ad.
- Opt to show both Images & Text ads, you have a better chance of getting more bidders to bid for your ad space when you offer more availability.
I hope that I was able to help you, If you have any suggestions to tips please feel free to share them below.