What is CTR?
CTR is "Click-Through Rate". It's a percentage that's calculated by dividing the total number of times an Adsense Ad is clicked (Clicks) by the total number of times the Ad is shown (Page Impressions) .
CTR = Clicks / Page Impressions
Example. let's say you get 100 Adsense page impressions a day and your visitors click on your ads 10 times.
The calculation would be:
(10 clicks) / (100 Page Impressions) = .10 or 10% CTR
What's a good CTR?
Well, that all depends on your perspective. If you're an Adsense Advertiser, a CTR of 1% to 3% is considered pretty good.
On the other hand, if you're an Adsense Publisher you want your CTR to be at least in the 5% to 10% range.
What affects CTR?
1. Content
The Content of your site has a lot to do with your CTR. Websites that focus on specific Topics or Products have much higher CTR's than more "generalized" sites.
Why? because Adsense for Content ads are "contextual". They're generated based on the "content" of your website. If your website is "content rich", the displayed ads will complement your content and visitors will be more likely to click on them.
For instance, let's say your website sells "Widgets" and has a lot "Widget" content. Your Adsense Ads will most likely be all "Widget" related. If I'm a consumer looking for Widgets and come across your website there's a very good chance I'll click on these ads.
Compare this to a website that's more "General" in nature. Let's say it contains a "personal" blog, some gaming pages, programming tips and my favorite music. The Adsense for Content engine (while quite smart) will trip over itself trying to figure out what ads to serve up on these pages. Anybody visiting this site will get mish-mash of Adsense ads and will be less likely to click on them.
2. Types of Visitors
Blogs and Forums tend to attract a lot of repeat visitors. Unfortunately these types of sites can also suffer from low CTR.
Why? it's called "Ad blindness". Return visitors tend to ignore the static ad positioning. Is there a "cure" for "Ad blindness"? Some Webmasters suggest changing the color and positioning of ads can improve things.
In these cases, CPM (Cost Per Impression) ads often work better (I'll discuss this in another section).


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