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Sunday, April 3, 2011

CTR: What Does It All Mean?

Are you new to Internet Marketing? Have you seen the word “CTR,” pop up again and again and wondered what it meant and what it was all about.  I remember the first time I came across the term.  It took me quite awhile before I figured out what it met.

If you’ve been involved in Internet Marketing, than you are well aware of what CTR means and the impact that it can have on your business. But, for anyone new to the business of Internet Marketing, here’s a brief overview and  the basics of CTR.

CTR simply put, stands for click through rate.  The next question that you’ll want to ask me is “What’s A Click Through Rate?”  The click through rate is the percentage of people that visit your page, advertisement or email, and click through to your desired link.

Here’s an example: Suppose you post an article to one of the article directories. If that article received 100 visits, but only 50 clicked through to your desired link, than your CTR is 50%.  A similar scenario would be if you have your own website with a link to an affiliate site. If 200 people visit your website, but only 44 people click on your affiliate link, than your CTR is 22%.

The Impact of CTR
CTR is important for a number of reasons. First of all, it can definitely impact your ability to drive the targeted traffic to your site that you need.  Secondly, it’s a good indication of your ability to reach your audience. Chances are that if you have a high click through rate, your writing ability to reach your audience is good. If you have a low click through rate, you need to examine how you are communicating with your audience.  Change your approach, try looking at what others have done to communicate with their audience and use some of their techniques. Tweaking and re-tweaking your emails, articles, and advertisements are things that have to be done consistently to grow your business. If you have more than one website and one has a very high CTR rate. Compare the two and see what differentiates the two.

Good and Bad CTR: What’s the Difference?
In my opinion, it’s hard to say what determines a good or bad CTR.  Frankly, I think it depends on the application. For example, if you’re using an article directory to promote your product, I think a 15-20% CTR for your resource box is pretty good. If you like to use Google AdSense, then you’ll probably want it to be higher than 15% due to the competition. Finally, for emails, a 40-50% CTR is acceptable.

To recap, the click through rate (CTR) can affect your ability to get high converting traffic. The key is to analyze and compare your work, re-write and re-tweak.  Eventually, you will see the fruit of all your efforts.

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