When you’re reading all these blogs online, do you ever wonder what all those acronyms and strange words mean? CTR? SEO? There are many more out there too. I’m going to try to help you out on some of these terms, and whatever you can’t figure out on your own, don’t be afraid to contact me and I’ll do my best to help you out.

Today, I’m going to try to explain CTR. CTR stands for Click Thru Rate. A lot of people and companies use this term when showing how many people have “clicked” on a certain ad or link. Generally, the higher the CTR, the better the performance of the ad. A high click thru rate on a link can be good and bad for your blog though. Here’s why:

• A high CTR on a link generally means that you’ve linked to a great site, or had some awesome anchor text that you used. This means that you link only to high quality content, which is good!
• High CTR on your link also equals a higher bounce rate, which could mean people are leaving your blog as quickly as they come, which is bad.

You can form your own opinion on this of course, and I would like to hear it, so please leave a comment.

Keep in mind that click thru rate is very important when it comes to making money online. If you are interested in doing this, you should know how well your ads perform, and this is one of the metrics that is involved in determining it. For example, a zero CTR on an ad is terrible, and you should examine how the ad looks, it’s placement, or if its even appropriate for your blog.

You can calculate CTR using this simple formula:

#clicks / #impressions * 100% = CTR

So, if you have 1 click on 100 impressions, you have a 1% CTR. Pretty simple, right? Now that you know what it is, all you should worry about when it comes to Ads is improving it. People also use CTR to promote their sites, showing you how high the CTR generally is on their website/blog. Look for high CTR if you are going to purchase advertising.

If you use Google Adsense, they show the click through rate of their ads on your site. How good is yours?

Image Courtesy of www.davegreenbaum.com.

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