What is CTR (Click Through Rate)?

If you are new to internet marketing you have probably seen the term CTR thrown around quite often. So, What is CTR? Well, CTR rate simply stands for click through rate. Click through rate is the percentage of people who visit your page (or email) and click through to your desired link. So if you send out an email to your list and 500 people viewed it, and 250 clicked through to the product you were promoting your click through rate would be 50%. If you made a post on your blog promoting a product and 100 people visit that page and 38 click on your affiliate link your click through rate would be 38%. CTR is a fairly straight forward term once you learn what it stands for.

Why is CTR important?

Click through rate is important because it gives you a good idea on how well your copy is working. If you have written a good ad, post, or email that really makes the prospect want to learn more then you will have a high click through rate. If your ad isn't getting a very high CTR then it's probably time to go back to the drawing board and try something new (if possible test the two against each other). One thing you need to be careful of is writing something outlandish just to get a high click through rate. If you say something about the product you are promoting just to get people to click through your sales will hurt when they realize you are not delivering on your promise.

What is a Good CTR?

There are many different factors that determine what is a good CTR. The industry you are in and what type of ad you are using are the most important. If you are sending out emails then you should be able to get at least a 50% CTR. If you are running a Google AdWords campaign you want at least a 1% CTR rate for your keywords. If you have Google AdSense on your site or blog you want at least a 10-15% CTR. If you are doing article marketing on Ezinearticles you should try to get at least a 15% CTR on your resource box.

The lesson here is that your skill at writing your ads or promotions is directly related to getting a high CTR. If you want to make more money online this is one skill that is essential to learn.

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Article Source: http://EzineArticles.com/1728303

Adsense - The Powerful Passive Income Generator!

Webmasters have a revolutionary new method of collecting income from their websites.

Whereas in the past advertising revenue was reserved for those sites with large a coming and going of visitors, now even teenagers are making a quick buck with their online hobby blogs. People place Adsense on their online family photo albums, their blogs and their business sites. The minimum you would get, even with a small amount of traffic, is for Adsense to pay for your hosting costs.

Adsense revolutionized the world of paid advertising; banner advertising is based on the number of visitors you attract to your site, so the number of "banner impressions" dictate the revenue you receive. Google Adsense is quite different; it is the number of visitors that actually click on the advertising that determine how much you earn.

There is also a great disparity between payouts; because advertisers bid up the price for certain keywords, some ads pay more than others. As such, a site with few visitors but expensive keywords in their google ads can potentially still pull in a hefty payout.

Google really has taken the web by storm; attracted to passive income, more and more people are seriously capitalizing on their Google Adsense advertising. Some of the highest earners manage to attract enough visitors to make a four figure monthly income, just from using Adsense alone! This is not one of those get-rich-quick schemes and Google's Adsense success is largely thanks to the fact that Google already enjoyed a fantastic reputation before introducing the program. They are a publicly traded company with physical headquarters. This, and the fact that anyone can apply to use Adsense for free, has caused millions of people to sign up. For google it was a smart move, because now they extend their presence to countless websites and generate millions of dollars in advertising revenue. People were never reluctant to sign up, because the program is free. Google benefits by more people using Adsense, so offering it for free was the best thing they could do.

One of the driving forced behind the program are its relevance to each and every page on a website; the program picks up keywords appearing in the website copy and automatically displays relevant ads. This increases the chances of people clicking through, and the webmaster collecting more revenue.

People are leveraging their income by operating several websites and attempting to attract as many targeted visitors as possible; in many instances we can observe that people work hard at a site, then once it is established they can largely leave it alone, yet still collect significant checks.

A major concern for entrepreneurs was the danger of a competitors ads showing up on their site; thanks to the Adsense feature where it only displays relevant advertising. However this problem was solved by offering webmasters the option of filtering out unwanted ads. They can submit the URL of the competing site in their account, and any ads from the website will be blocked.

Google recently came out with a new feature: small targeted keywords based on the site's content are displayed; then as people click on those, a page opens showing a variety of pay-per-click ads based on that keyword. This gives webmasters the chance of displaying more advertising in less space.

Adsense also adds credibility to your website; the more focused the content, the better the ads will be and this encourages people to built high quality websites. These make the net a better place and generally provide a free service; site owners can afford to share their expertise or passions because they can receive indirect revenue's. The visitor does not pay for the information; instead the advertisers do, making the website's existence possible in the first place.

It is no surprise Google Adsense is the most widely used form of advertising; they have created a program that is beneficial to both advertisers and users with their "no click no pay" mechanism, or more popularly called "pay-per-click". Advertisers do not pay for ads that are not drawing visitors, and website owners are paid more for each click than they would if the system were based on the number of people viewing the ads, instead of clicking on them.

All in all Google Adsense has developed itself into a powerful tool, used by large corporations and the kid next door. They have truly revolutionized how the web thinks about advertising and made the process more profitable for site owners, while less costly for advertisers.Article Source

Google AdSense and AdWords - Like Yin and Yang

Many websites include a section or two with the "Ads by Google" above it or below it. These are ads displayed via Google's AdSense. When you do a search on Google and see ads in the search results pages, they are generally AdSense ads.

AdSense - The Yin:

Google's AdSense is programming that "senses" the content of a page or search. It finds keywords on a web page or in a search phrase to determine the subject of the content. It does this by either "reading" the page, or taking a look at the search term that was typed into Google Search. It can "Sense" which ads in the system are relevant to the content or search and display them - thus: "AdSense."

Before ads on a page are displayed, AdSense searches its database of advertisers and finds ads that are associated with keywords on the page or in the search. Now AdSense needs to decide which of the thousands of ads vying for position are actually displayed. To make this decision, AsSense looks at the advertiser's bids for the relevant keywords. The advertisers that have a combination of the highest bid, keyword relevance and best click through get displayed first.

Google tracks clicks on ads and advertisers pay Google the bid price for each click. When the AdSense ad is on someone's web page, Google pays the website owner a portion of the payment for each click. The term "monetizing" your site refers to taking your existing site and placing ads like AdSense on it to make money (or finding other way to make money with websites). If you get 10,000 visitors and 10% of them click an ad that pays you, theoretically, $0.75 per click, you just made $750! Not bad for just copying some AdSense code (which Google provides) into your popular website's HTML (if your site is not popular, learn about SEO - Search Engine Optimization - from sites like AcmeWebResources).

AdWords - The Yang:

The other side to AdSense is AdWords. AdSense ads have lists of relevant keywords associated with them. Each keyword is bid on by the advertisers for placement in the results pages and on web sites around the world. The words that will prompt a display of an advertiser's ad are bid on by the advertiser. When an ad matches the words on a page, the ads are displayed; thus: AdWords. AdWords is the system in Google that is used to place ads that display in AdSense.

You can enroll in AdWords to pay for AdSense ads to drive traffic to your site. The first step is to sign up with Google. The next step is to associate keywords to associate with your site.

The idea is to drive traffic to your site through the use of relevant ads. The more relevant the ad to your content, the more targeted your traffic will be. Compose your articles around your list of keywords. Next, write an ad based on the keywords and assign keywords to the ad. You will bid on the keywords at the time you associate keywords with the ad. If one of your keywords is searched for or relevant to a site, and you have a good bid and relevant ad, your AdWord ad will be displayed. Only when someone clicks your ad are you charged by Google.

The more popular keywords are wanted by many competitors, so the prices per click can get pretty high. It is not uncommon for a click to cost $5 or even $10. If you have 10,000 ad clicks, after you account for your conversion rate (the rate that you convert visitors into buyers) you better be sure you are making more than the ad click costs! But it should never break your bank because you can set the bid limits and the monthly budget.

What if you can't afford $5.00 per click? Since the more popular keywords are so expensive, it is best to bid on less popular keywords because the cost per click is lower. Google presently has a minimum bid of $0.05 per click. If you can get those, you can reduce your advertising budget.

A popular site can make a lot of money, however, a lot of money and time can be wasted. To avoid waste, you have to learn as much as possible and get the right tools to do the research.