The Pay Per Click Reality
Overview, What is Pay Per Click Advertising?
Pay Per Click Management Services
Limiting Your Market: What You Don't Know About
Pay Per Click Bid Management Software
Pay Per Click Cost
Pay Per Click ROI Report
PPC Click Through Rates
Pay Per Click Search Engine Advertising Click Through Rates
A click through rate is the percentage of people who clicked on an ad to arrive at the destination site. In Pay Per Click (PPC) search engine online advertising, click through rates are important in determining how much an advertiser is spending on their online advertising program and how much profit they are acquiring. Advertisers will profit more from organic search engine optimization services by a professional website promotion and custom website design company such as Dynamic Digital Advertising (DDA) because, unfortunately, the cost of paid click throughs often exceeds the profit achieved.
Definition of Click Through Rate
A click through is when a search engine user clicks on an advertiser's
online advertisement and they are directed through that advertisement
to the advertiser's website. The Click Through Rate (CTR) measures what
percentage of people clicked on the ad. It is the average number of
click-throughs for every hundred ad impressions.
The conversion rate is the percentage of search engine users who take
the advertiser's desired action, such as product sales, newsletter subscriptions
or membership registrations. High click through rates do not necessarily
mean good conversion rates. In fact, the overall conversion rate of
PPC sites is 3 times less than that of unpaid sites1.
Click Through Rate vs. Conversion Rate
Click Through Rates (CTR) deliver targeted search engine users to an
advertiser's website but it is the conversion rate that truly measures
the success of an ad. CTR accounts for immediate response to an ad but
conversion rates account for the overall response and the achievement
of the desired action. In PPC marketing programs, a click through will
cost an advertiser the agreed cost per click but it may not mean that
the search engine user will follow through with the advertiser's desired
result. A click through costs an advertiser but a conversion will gain
an advertiser profit.
What CTR Does Not Measure?
CTR does not account for those who do not initially click on an ad,
but decide later to go back and visit the website the ad links to. Nor
does it account for search engine users who type an advertiser's URL
directly into the browser. CTR can also be difficult to measure because
click fraud accounts for an estimated 15-30% of all click throughs.
Choosing to employ the organic search engine optimization services of
a professional search marketing custom website design company like DDA
will save an advertiser the hassle of unreliable statistics and high
cost per click.
1 SEMPO 2006