If you currently run online advertising, it is incredibly important that you are aware of your click through rate (ctr) for a few reasons:

1. higher ranking for your ad (ctr is a factor in the quality score for ad rank on Google)
2. lowest possible cost per click (the higher the ctr, the lower the bid can be for that same placement).
3. more traffic and more sales (no clicks = no conversions)

A click through rate is the percentage of viewers that click on the ad.  The ctr is calculated by dividing the number of impressions with the number of viewers that clicked on the ad.  For example, an ad with 2500 impressions and 45 clicks would have a click through rate of 1.84%.  Here are a few tips to increasing your click through rate:

1. Don’t use keywords that are too general and broad, i.e. retail
2. Strategically place your keywords, well performing ads usually have keywords in the headline.
3. Include specific details in describing your product or service, users will be more likely to click on an ad if it is relevant to their needs.
4. Use enticing text that will make viewers want to click on your ad, like a promotion.
5. Include short, hard hitting copy or ask a question.
6. Create a variety of ads that rotate.
7. Highlight your unique selling point. What makes you different from your competition?

Although maintaining a high click through rate is important, a high conversion rate is also extremely important. If your ads have a high ctr, with low conversion, revisit your site and see how you can make it more user friendly. Tips on creating a site that converts is soon to come.

Tags: click through rate, ctr, online advertising

This entry was posted on Thursday, June 24th, 2010 at 8:06 am and is filed under Google Adwords, Pay Per Click campaign, online advertising. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.