Saturday, October 11, 2008

What is CTR - Click Thru Rate

Let me quickly introduce a term CTR
CTR stands for Click Thru Rate.
Suppose you have 500 visitors and 25 of them clicks on your ads, then your CTR can be calculated as:
CTR = (25/500)*100 = 5%

CTR is an important factor that can influence the earning potential of a website. CTR can vary across industry. For example the CTR in a Google Adsense forum may be low as the users are very well aware of the ads present and they tend to ignore them. But in your industry (food) we can hope that the users won’t be very much aware of ads. Again CTR depends on ad position, its color and some other factors like the size of the ad unit. If optimized, a CTR of at least 4 – 5 can be achieved.

So in your case, this will be the equation.
CTR = (clicks/1000)*100 = 5
clicks = 50
ie; you will have approx 50 clicks a day.

Now the pay per click will depend on your site’s content. You will have to use keyword research to find the good paying keywords in your industry (food) and write more pages on these keywords. You can drive traffic to these pages and monetize them better.

Now you can find for yourself what your earnings would look like. If your keywords give an approx 0.5$ a click, you will make 50*0.5 =25$ a day.
If the keywords are good enough to give 1$ a click you make 50$ a day!
It can also be low depending on the keywords. So pls do some research!

Again I would recommend Adsense, as managing the ads are really simple here and you end up getting more time to concentrate on your site's content and promotion.

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