What is a CTR page? and how does it affect earnings?
Well, for starters, let’s answer the question “What is CTR?” Ctr is an indicator of clickthrough rate, the ratio of the number of clicks to the number of impressions. The more – the more effective advertising and, as a result, greater earnings.
The CTR rating is one of the most well-known tools for evaluating the effectiveness of a banner, although its widespread use seems to me not quite adequate to the tasks posed to advertising campaigns.
Obviously, a simple calculation of “the number of impressions per page divided by the number of clicks from the page” gives a figure that speaks more of the average CTR of the banners displayed on this page, and not of the advantages or disadvantages of this page. Moreover – it is obvious that the site CTR is relative. Indeed – no one can say in advance how many times they click on an arbitrary banner on a particular page – we can only assume that this figure will be somewhere near the average CTR of the banner. In fact, the advertiser is interested in whether this particular page improves the indicator of his banner or worsens, and the term CTR of the banner is clearly about it.
Actually, with such a statement of the problem, calculations for the first approximation become quite simple – all you need is a fairly voluminous statistic. The average site CTR is calculated as the ratio of the average CTR of the banner package to the CTR of the same package on this page. This figure has a positive or negative value and says how many percent the CTR value for the average banner placed on this page changes.
However, this figure does not fully reflect the attractiveness (or unattractiveness) of the page for the advertiser. Obviously, for a more credible assessment, at least one more indicator is needed – the clickthrough rate of the audience. Experienced advertisers understand – programs, for example, advertise more efficiently on pages about programs, or, for example, computers. In these cases, the target audience of banners and pages coincides and the CTR of such banners rises. The calculation of this coefficient is also obvious – the ratio of the CTR of the thematic banner to the CTR of the package on this page.
After carrying out all these calculations, we get 2 digits, the meaning of which can be explained in an easily accessible form to anyone. For instance:
Our Services Page
target clickthrough rate
which in Russian means – the average statistical banner is clicked on this page 10% less than the average, but if the target audience is the same, the percentage of clicks on the banner will increase by 15% (-10 + 25 = 15). If you are interested in nuclear students, this is definitely the page you need, if not, it’s better not to meddle here.
I note that the situation with polar CTR pages, that is, when one value is less than zero, and the second more seems to me not so far-fetched. And, what’s most interesting, another understanding of this situation shows another, extremely important understanding – CTR, as an indicator of quality, is suitable only when working for the target audience. It would seem that it is enough to place a banner only on pages with the same target audience, and the effectiveness of your advertising will increase. But it’s obvious that you are deliberately limiting the distribution of advertised pages. Which, tactically, is not necessarily justified – it is noted that within the target audience information tends to spread much faster than average. One person from the target audience who came to your pages will lead an entire bush of visitors in an extremely short time, automatically reducing the effectiveness of each subsequent display of your banner. It’s efficiency, not CTR, because clicking on the banner of the person who will know CAM about your country tomorrow is a decrease in the effectiveness of advertising. The question remains – how interesting are you to attract people from outside the target audience. With serious thought, the answer may seriously not coincide with the original. For example, you formulate the target audience as “people who want to purchase a rustle through the Internet.” Of course, the site “Who is a rustler?” will give you fairly effective clicks. But a fair portion of the audience now knows nothing about rustlers, and some will want to have it only next year, when your advertising campaign is over. Showing this audience, while still not targeted, your banner is not effective from the point of view of CTR, however after a while its effect can be much more significant than the effect of targeting impressions.
In fairness, it should be noted that this effect is VERY dependent on the banner that you place.