Understand AdWords | What is Clickthrough Rate? (CTR)

“Click-through rate” or “CTR” is the most important factor in determining the effectiveness of your ad copy or ad design.

So what is it?

It’s the percentage of times your ad was clicked out of all the times it was shown.

It’s calculated by dividing the number of clicks by the number of impressions.

If your ad was shown 1,000 times but it was only clicked 10 times, your click-through rate (or CTR) would be 1.00% If it were clicked only once, your click-through rate would be 0.10%.

By comparing the click-through rates of your ads, you can determine which ad copy or ad design is more enticing to the viewer and will attract more visitors to your website.

In AdWords, CTR is one of the most important factors in determining how much you’ll have to pay to have your ads shown in a certain position. Improving your click-through rate will not only attract more business to your site, it will also lower your costs!

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