Tuesday, March 09, 2010

Building A Better Click-Through Rate...

What is Click-Through Rate? Simple: clickthrough rate (CTR) is the number of clicks your ad receives divided by the number of times your ad is shown (impressions)... And it isn't that hard to improve folks!

Good CTR is certainly above the 0.05% rate that AdWord asks you to maintain in order to keep your ad running for each keyword. If your CTR is lower, your beautiful, but under performing, ad is disabled after it receives a thousand impressions. 0.05% is not enough. But it's hard to tell what is good and what is bad CTR.
It depends on:
  • Keyword popularity Imagine your CTR for a keyword like “computers” is 2.1... Usually, a keyword like has a popularity problem - everyone wants to use it. These kinds of words generate a lot of impressions, but the percent of people that actually click on ads is low. In this circumstances, your 2.1% isn't so bad. If you choose “computer mac repair durango co” instead, you'll probably get fewer impressions, and fewer clicks, but a much better click through rate. This second keyword is not popular, but much more targeted. When comparing two similar keywords — a general and a specific one, you should see a big difference in the CTR they get as well as in their conversion rates. A keyword that has both low popularity and low CTR is actually low value.
  • The other people competing with you!  To follow the concept above, we expect a popular keyword like "computers" to have serious competition. This means higher CPC (cost per click), and fewer chances to get clicks. However, there are possibilities that few people are bidding on “computer mac repair durango co” — if any — and in this case all the searchers/viewers/clickers are yours!
Google Adwords makes determining your success rate somewhat easy... For those of us investing in an adwords campaign, Google developed a calculator system by which you could pre-measure the performance.

You can find the calculator by going here... The idea would be to test as many ideas as possible to target in on your campaign results. The real news here is actually paying attention to your adwords campaign. Technically, it is only a gmail account away and a few clicks each day to truly leverage your investment! 

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