Pay Per Click Terminology | Click-through Rate (CTR) | Explain Click-through Rate

Click-through Rate (CTR):

Click-through rate or CTR is a way of measuring the success of an online advertising campaign. A CTR is obtained by dividing the "number of users who clicked on an ad" on a web page by the "number of times the ad was delivered" (impressions)

CTR = Clicks/Impressions*100

For example, if a banner ad was delivered 100 times (impressions delivered) and 1 person clicked on it (clicks recorded), then the resulting CTR would be 1 percent (1%).

A low CTR may point to poor keyword performance, indicating a need for ad or keyword optimization. Therefore, you can use CTR to gauge which ads and keywords aren't performing as well for you and then optimize them.

A high click-through rate may not assure a good conversion rate, and the two rates may even share an inverse relationship. An advertisement geared towards curiosity clicks will result in fewer sales, percentage-wise, than an advertisement geared towards qualified clicks.

CTR is also used to determine your keyword's Quality Score. Higher CTR and Quality Score can lead to lower costs and higher ad position.

What is Pay per Click (PPC) Advertising? | Pay Per Click (PPC) | What is PPC

What is Pay per Click (PPC) Advertising?

PPC is an Internet advertising model used to direct traffic to websites, where advertisers pay the hosting service when the ad is clicked

Pay per Click (PPC) enables you to list your site at the top of search engine results by advertising on keywords that best describe your product or service. It's a dynamic marketplace - the higher you bid, the higher your advertisement will be displayed in the list.

PPC Ads is largest and most popular form of Internet advertising in which advertiser pay only for those who click on your listings which means pays per click, each clicks on their ad and links to the landing page. It is used on search engines, advertising networks, and content sites, blogs, forums etc

Among PPC providers, Google Ad Words, Yahoo! Search Marketing, and Microsoft ad Center are the three largest network operators, and all three operate under a bid-based model. Cost per click (CPC) varies depending on the search engine and the level of competition for a particular keyword.

Pay per Click is not only available on search engines. Publishers can also include PPC advertisements on their sites.