What is an ideal CTR?

Canadaseopro · 04-24-2010, 09:31 PM

Good day all. I'm recently getting into the multi media banner advertizing gig and I in my present campaign is a CTR rate of .08% and I'm told this is an expectable rate for my impressions. So I'd like to hear some positive experiences (maybe even numbers?) on CTR rates and helpful ways to increase them. Thank you in advance for any info at all, Todd.

AdamBartol · 04-25-2010, 10:26 PM

Are you paying for impressions? With display advertising you really want to be optimizing on a eCPM basis.

RyanEagle · 04-25-2010, 11:54 PM

It totally depends on the product that your promoting. A CTR that would be good for... weight loss is horrible for mobile or download offers. Reach out to your account manager for questions (assuming the network knows their ****).

gmiller · 04-26-2010, 01:50 AM

If you are getting 2% CTR, then it is much better.

Kenster · 04-26-2010, 07:43 AM

Ideal CTR.....100%

or over a 100...just to cover the margin of error in tracking!

CTR is only important relative to your CPA offer and campaign. If you have a very high payout, you can have an awful CTR and still make a lot of money. Or, you can have a crappy CTR but awesome conversion rate and that is great. Alternatively, you can have a 100% CTR but 0% conversion rate, and obviously that's not good. So its all relative!

Canadaseopro · 04-26-2010, 08:12 AM

Thank you Kenster, guys. I am not going to get a 100% ctr rate, has anoyone? lol I am using clicksor Network and I'm not getting the exposure I feel this champagne needs. So I feel the need to ask "what is some of the top networks to advertise on?' What are the most important points in banner advertizing to keep in mind? I am breaking even at the moment and would like to excel. Thank you in advance

P.S. has anyone used Google ad-words yet for banner advertizing? if so what is your opinion on this network. thanx in advance guys, Todd.

Quote:

Originally Posted by Kenster

Ideal CTR.....100%

or over a 100...just to cover the margin of error in tracking!

CTR is only important relative to your CPA offer and campaign. If you have a very high payout, you can have an awful CTR and still make a lot of money. Or, you can have a crappy CTR but awesome conversion rate and that is great. Alternatively, you can have a 100% CTR but 0% conversion rate, and obviously that's not good. So its all relative!

Affiliit · 04-26-2010, 08:57 AM

This is an impossible question, too much depends on the ad, advertising network, niche, how you are targeting etc

jh3000 · 04-26-2010, 03:19 PM

To better explain some other responses:

In regards to click rates on banner ads, the average is below .5%, with people doing cpa it is often below .2% even for a top performing ad. .08% could be very good or be bad, based off your cost for that ad. This rate on Clicksor is may be good as the cpm is very low.

CTR is only one factor in determining your success however, and can't be standardized in terms of determining success.

What is your ROI? That is what you need to be asking yourself.

As pointed out it is completely relative and all about the campaign. The click through rate is less important than a combination of your ad spend,ctr, conversions, and payout. A low ctr with high conversions and a good payout is better than a high click rate with lower conversions and payout.

Even if an ad with high click through with high conversion can be bad if the ad cost is too high and payout not high enough.

To give you perspective, if you have an CTR of .08%, with a conversion of 2% and an offer at $25 per action, 100,000 ad impressions will earn $40 (about 1.6 sales). If you could have a high CTR of .2%, with a conversion of .5% with an offer that pays $25, 100,000 ad impressions will earn $25. The first set of results earn 60% more, even though it has a lower CTR. It would be even more if the payouts were different.

What metric you need to look at is your ECPM, which is your earnings per 1000 ad impressions, this will determine if you are getting a good ROI or not.

Your in this case your ECPM is: campaign earnings/(ad impressions/1000)=ECPM

I hope that helps.

Canadaseopro · 04-26-2010, 03:56 PM

Thank you for the info, so each per say "avenue" of your campaign should be focused on the best material that you can generate. Knowing this (and when ready to advance) how does one "tweek" their campaign, eg... by joining numerous small dog networks oir by joining 1 big dog network or affiliate advertizing, etc...thnx in advance, T

P.S. Could someone please post a few banner 'Big Dog" cpm websites that have worked and actually generated a ROI for them? Thnx T

P.S. has anyone used Clicksor ? If so how was your experience? T

Kenster · 04-26-2010, 04:38 PM

JH 3000 makes some good points about CTR. Its really just one piece of the puzzle.

I would even take it a step further and say that all you care about is PROFIT not ROI

ROI is what you care about if youre an investor. You put in x dollars and want say a 10% return on your investment.

As a CPA marketers or owner of your business, profit is teh ultimate metric. CTR is a piece of the puzzle in achieving profit and ROI is an even more important piece, but its still just a piece.

I would sacrifice my ROI any day of the week if it means more profit and money in my pocket. If I can make up a lower ROI with volume, then it is worth it.

The point being that there are many metrics. Each metric is important in its own regard and is relative to where you are in the CPA marketing chain. But, the one metric that trumps all is net profit, its money in the bank!!

financeandinsurancetips · 04-27-2010, 04:05 AM

I think the average CTR can be around 4^. This will not affect you much and neither will Google warn you of high CTR rates. Normally they ban you without any prior notice..

badboy_Nick · 04-27-2010, 05:19 AM

Quote:

Originally Posted by Canadaseopro

Good day all. I'm recently getting into the multi media banner advertizing gig and I in my present campaign is a CTR rate of .08% and I'm told this is an expectable rate for my impressions. So I'd like to hear some positive experiences (maybe even numbers?) on CTR rates and helpful ways to increase them. Thank you in advance for any info at all, Todd.

Banner ads always have a very low CTR as opposed to articles or PPC.

I found that banner advertizing doesnt work anymore due to people having banner blindness. I now solely focus on PPC and SEO (well, mostly PPC, that is lol).

Any questions just let me know

Nick

jh3000 · 04-27-2010, 06:33 PM

Quote:

Originally Posted by Kenster

JH 3000 makes some good points about CTR. Its really just one piece of the puzzle.

I would even take it a step further and say that all you care about is PROFIT not ROI

ROI is what you care about if youre an investor. You put in x dollars and want say a 10% return on your investment.

As a CPA marketers or owner of your business, profit is teh ultimate metric. CTR is a piece of the puzzle in achieving profit and ROI is an even more important piece, but its still just a piece.

I would sacrifice my ROI any day of the week if it means more profit and money in my pocket. If I can make up a lower ROI with volume, then it is worth it.

The point being that there are many metrics. Each metric is important in its own regard and is relative to where you are in the CPA marketing chain. But, the one metric that trumps all is net profit, its money in the bank!!

To clarify,

You are correct in profit is always the bottom line, however that is exactly what your ROI is going to show. That is why I mention that as one of your reference points when using a paid source of traffic.

In terms of paid advertising, you can't have a lower ROI, with higher profit, as your ROI determines your profit in paid advertising. At least in the context here of paid advertising promoting cpa offers.

ROI="Return on Investment" for those that may not know. In the context of paid advertising, it is key in determining what your profit will be. ROI=(gross earnings-ad cost)/ad cost

There may be some business ventures where ROI may not determine end profits, depending on how it is calculated, but generally in this instance it does.

I am not sure in what terms you are thinking of profit and ROI, but they directly correlate in this situation.

This does however raise a valuable point once again of why to refer to your ECPM as I described for a clear, unconfusing reference when using paid ads for CPA. You can see exactly how much profit you will make from ECPM(explained in a post above)-CPM(ad cost per 1000 impressions)=your profit.

Much more important than your CTR, as a true indicator of what your profit will be.

Canadaseopro · 04-27-2010, 06:57 PM

Yeah I'm seeing that "banner blindness", but doesnt every campaign go through that? I've also read, its the quality of your material that has to have the huge draw. Plus advertizing the affiliate program is a whole new ball of wax, lol. (sorry for plug)

Quote:

Originally Posted by badboy_Nick

Banner ads always have a very low CTR as opposed to articles or PPC.

I found that banner advertizing doesnt work anymore due to people having banner blindness. I now solely focus on PPC and SEO (well, mostly PPC, that is lol).

Any questions just let me know

Nick

Canadaseopro · 04-27-2010, 07:04 PM

Thanx guys great info! I love this forum. So what it comes down to is how your CPM material presentation is in a whole will have an effect on your campaign. But are their certain areas that one could focus on to excel in the banner advertizing eg...affiliate promotion, banner advertizing in big dog sites (name a few with high ROI?) Not asking for any secrets or tricks, just experience and knowledge. Thnx in advance for all your help and guidance, T.

Quote:

Originally Posted by jh3000

To clarify,

You are correct in profit is always the bottom line, however that is exactly what your ROI is going to show. That is why I mention that as one of your reference points when using a paid source of traffic.

In terms of paid advertising, you can't have a lower ROI, with higher profit, as your ROI determines your profit in paid advertising. At least in the context here of paid advertising promoting cpa offers.

ROI="Return on Investment" for those that may not know. In the context of paid advertising, it is key in determining what your profit will be. ROI=(gross earnings-ad cost)/ad cost

There may be some business ventures where ROI may not determine end profits, depending on how it is calculated, but generally in this instance it does.

I am not sure in what terms you are thinking of profit and ROI, but they directly correlate in this situation.

This does however raise a valuable point once again of why to refer to your ECPM as I described for a clear, unconfusing reference when using paid ads for CPA. You can see exactly how much profit you will make from ECPM(explained in a post above)-CPM(ad cost per 1000 impressions).

Much more important than your CTR, as a true indicator of what your profit will be.

jh3000 · 04-27-2010, 09:13 PM

Quote:

Originally Posted by Canadaseopro

Thanx guys great info! I love this forum. So what it comes down to is how your CPM material presentation is in a whole will have an effect on your campaign. But are their certain areas that one could focus on to excel in the banner advertizing eg...affiliate promotion, banner advertizing in big dog sites (name a few with high ROI?) Not asking for any secrets or tricks, just experience and knowledge. Thnx in advance for all your help and guidance, T.

lol...we did get a bit off your CTR question for a moment didn't we.

You are correct, it is about your campaign as a whole, not just CTR.

You should definitely look at your CTR, but only as a function of what it is verus your cost and return, and other KPI.

You should also look at the conversion of the offer, and your landing page, assuming your using one.

So to reiterate, some Key performance indicators "for you to focus on" will be ad cost, payout, banner CTR, landing page CTR if you have one, and offer conversion.

Use ECPM, to give you a "big picture" look at how everything is working together to determine your profit. It can also help you determine how much you can afford on your ad spend.

Kenster · 04-27-2010, 09:42 PM

Quote:

Originally Posted by jh3000

To clarify,

You are correct in profit is always the bottom line, however that is exactly what your ROI is going to show. That is why I mention that as one of your reference points when using a paid source of traffic.

In terms of paid advertising, you can't have a lower ROI, with higher profit, as your ROI determines your profit in paid advertising. At least in the context here of paid advertising promoting cpa offers.

ROI="Return on Investment" for those that may not know. In the context of paid advertising, it is key in determining what your profit will be. ROI=(gross earnings-ad cost)/ad cost

There may be some business ventures where ROI may not determine end profits, depending on how it is calculated, but generally in this instance it does.

I am not sure in what terms you are thinking of profit and ROI, but they directly correlate in this situation.

This does however raise a valuable point once again of why to refer to your ECPM as I described for a clear, unconfusing reference when using paid ads for CPA. You can see exactly how much profit you will make from ECPM(explained in a post above)-CPM(ad cost per 1000 impressions)=your profit.

Much more important than your CTR, as a true indicator of what your profit will be.

I see what you are saying but I am making similar, yet different argument.

We both agree that profit is the most important, no questions there.

But, ROI doesnt in itself show profit. ROI in relation to scale does show profit.

Lets take an example.

If you are aiming at keywords that make you an ROI of 200% for a particular campaign. So any keywords under 200% you drop. Now when you limit yourself like that, then you may be cutting out the most searched for terms. Maybe now you are left with 5 keywords that make you 200% ROI, but since the search volume is low, you can only spend a maximum of $100. So now you spend $100 and make $200 profit.

But maybe you set your ROI limit lower, to say 50%. This opens up a whole range of new keywords that you are targeting. Perhaps now that you included all new these new keywords, now you are getting massive volume. Maybe you are able to spend $5000 per day. With a lower ROI of 50%, now you are making profit of $2500. So your profit is higher even though your ROI is lower.

So, ROI in itself can be a limiting factor. Of course for a given data point, you will aim for the highest ROI you can. My point is that you need to look at volume in relation to ROI.

Heck, I would be satisfied with a 5% ROI if that enables me to generate $1,000,000 in adspend per day. Even though the ROI is abismal, my profit is $50,000 per day.

Obviously the above point is for illustration and it all depends on traffic source, limitations, and traffic constraints.

But, I just wanted to point out that too many people rely to heavily on ROI. I have set up my business primarily on profit. I am in the business of making profit. I will sacrifice my ROI if it means more profit.

So I agree and disagree!

abhishekmishra · 03-02-2012, 03:49 AM

Thanks All For this...!

Sornie Samante · 04-21-2012, 02:35 AM

thanks for this thread good ideas are just pouring in.. I am really new to PPC so I dropped here to read the entire thread. Thanks so much guys.

04-24-2010, 09:31 PM	#1
Canadaseopro Canada SEO Professional War Room Member Join Date: Feb 2010 Location: Vancouver B.C. Canada Posts: 63 Blog Entries: 9 Thanks: 30 Thanked 6 Times in 6 Posts Social Networking	What is an ideal CTR? Good day all. I'm recently getting into the multi media banner advertizing gig and I in my present campaign is a CTR rate of .08% and I'm told this is an expectable rate for my impressions. So I'd like to hear some positive experiences (maybe even numbers?) on CTR rates and helpful ways to increase them. Thank you in advance for any info at all, Todd.
	Internet Marketing Vancouver \| Website Company Vancouver \| SEO Company \| SEO Vancouver \| SEO \| Backlinks Last edited by Canadaseopro; 04-24-2010 at 09:32 PM. Reason: spellin

04-25-2010, 10:26 PM	#2
AdamBartol Warrior Member Join Date: Apr 2010 Posts: 15 Thanks: 0 Thanked 0 Times in 0 Posts	Re: What is an ideal CTR? Are you paying for impressions? With display advertising you really want to be optimizing on a eCPM basis.

04-25-2010, 11:54 PM	#3
RyanEagle I'll Make You Rich Join Date: Dec 2009 Location: Chicago, IL Posts: 692 Thanks: 7 Thanked 94 Times in 76 Posts Social Networking Contact Info	Re: What is an ideal CTR? It totally depends on the product that your promoting. A CTR that would be good for... weight loss is horrible for mobile or download offers. Reach out to your account manager for questions (assuming the network knows their ****).
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04-26-2010, 01:50 AM	#4
gmiller Warrior Member Join Date: Feb 2010 Posts: 21 Thanks: 0 Thanked 0 Times in 0 Posts	Re: What is an ideal CTR? If you are getting 2% CTR, then it is much better.
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04-26-2010, 07:43 AM	#5
Kenster Krazy Kenster War Room Member Join Date: Jan 2009 Posts: 5,111 Blog Entries: 11 Thanks: 672 Thanked 2,009 Times in 885 Posts	Re: What is an ideal CTR? Ideal CTR.....100% or over a 100...just to cover the margin of error in tracking! CTR is only important relative to your CPA offer and campaign. If you have a very high payout, you can have an awful CTR and still make a lot of money. Or, you can have a crappy CTR but awesome conversion rate and that is great. Alternatively, you can have a 100% CTR but 0% conversion rate, and obviously that's not good. So its all relative!
	Six Figure Alliance Training/Coaching Course... Kenster's Six Figure Mission Blog \| Kenster's Six Figure Alliance \| WarriorJV - WSO Launches

04-26-2010, 08:57 AM	#7
Affiliit Affiliit Marketing Mentor Join Date: Aug 2009 Posts: 288 Thanks: 2 Thanked 8 Times in 8 Posts Social Networking	Re: What is an ideal CTR? This is an impossible question, too much depends on the ad, advertising network, niche, how you are targeting etc
	Learn Affiliate Marketing - Affiliit - Learn How to Make money with Facebook, POF, CPV/PPV, PPC, SEO, etc! Try Out Affiliit Now And See How Hundreds are Making Money Online!

04-26-2010, 03:19 PM	#8
jh3000 Advanced Warrior War Room Member Join Date: Mar 2006 Posts: 755 Thanks: 2 Thanked 10 Times in 4 Posts	Re: What is an ideal CTR? To better explain some other responses: In regards to click rates on banner ads, the average is below .5%, with people doing cpa it is often below .2% even for a top performing ad. .08% could be very good or be bad, based off your cost for that ad. This rate on Clicksor is may be good as the cpm is very low. CTR is only one factor in determining your success however, and can't be standardized in terms of determining success. What is your ROI? That is what you need to be asking yourself. As pointed out it is completely relative and all about the campaign. The click through rate is less important than a combination of your ad spend,ctr, conversions, and payout. A low ctr with high conversions and a good payout is better than a high click rate with lower conversions and payout. Even if an ad with high click through with high conversion can be bad if the ad cost is too high and payout not high enough. To give you perspective, if you have an CTR of .08%, with a conversion of 2% and an offer at $25 per action, 100,000 ad impressions will earn $40 (about 1.6 sales). If you could have a high CTR of .2%, with a conversion of .5% with an offer that pays $25, 100,000 ad impressions will earn $25. The first set of results earn 60% more, even though it has a lower CTR. It would be even more if the payouts were different. What metric you need to look at is your ECPM, which is your earnings per 1000 ad impressions, this will determine if you are getting a good ROI or not. Your in this case your ECPM is: campaign earnings/(ad impressions/1000)=ECPM I hope that helps.
	-Jeffrey

04-26-2010, 03:56 PM	#9
Canadaseopro Canada SEO Professional War Room Member Join Date: Feb 2010 Location: Vancouver B.C. Canada Posts: 63 Blog Entries: 9 Thanks: 30 Thanked 6 Times in 6 Posts Social Networking	Re: What is an ideal CTR? Thank you for the info, so each per say "avenue" of your campaign should be focused on the best material that you can generate. Knowing this (and when ready to advance) how does one "tweek" their campaign, eg... by joining numerous small dog networks oir by joining 1 big dog network or affiliate advertizing, etc...thnx in advance, T P.S. Could someone please post a few banner 'Big Dog" cpm websites that have worked and actually generated a ROI for them? Thnx T P.S. has anyone used Clicksor ? If so how was your experience? T
	Internet Marketing Vancouver \| Website Company Vancouver \| SEO Company \| SEO Vancouver \| SEO \| Backlinks Last edited by Canadaseopro; 04-26-2010 at 04:04 PM. Reason: spellin lol add p.s.

04-26-2010, 04:38 PM	#10
Kenster Krazy Kenster War Room Member Join Date: Jan 2009 Posts: 5,111 Blog Entries: 11 Thanks: 672 Thanked 2,009 Times in 885 Posts	Re: What is an ideal CTR? JH 3000 makes some good points about CTR. Its really just one piece of the puzzle. I would even take it a step further and say that all you care about is PROFIT not ROI ROI is what you care about if youre an investor. You put in x dollars and want say a 10% return on your investment. As a CPA marketers or owner of your business, profit is teh ultimate metric. CTR is a piece of the puzzle in achieving profit and ROI is an even more important piece, but its still just a piece. I would sacrifice my ROI any day of the week if it means more profit and money in my pocket. If I can make up a lower ROI with volume, then it is worth it. The point being that there are many metrics. Each metric is important in its own regard and is relative to where you are in the CPA marketing chain. But, the one metric that trumps all is net profit, its money in the bank!!
	Six Figure Alliance Training/Coaching Course... Kenster's Six Figure Mission Blog \| Kenster's Six Figure Alliance \| WarriorJV - WSO Launches

04-27-2010, 04:05 AM	#11
financeandinsurancetips insurancetips Join Date: Dec 2009 Posts: 47 Thanks: 0 Thanked 4 Times in 4 Posts	Re: What is an ideal CTR? I think the average CTR can be around 4^. This will not affect you much and neither will Google warn you of high CTR rates. Normally they ban you without any prior notice..

03-02-2012, 03:49 AM	#18
abhishekmishra Warrior Member Join Date: Mar 2012 Posts: 1 Thanks: 0 Thanked 0 Times in 0 Posts	Re: What is an ideal CTR? Thanks All For this...!
	SEO Company SEO Services SEO Firm India

04-21-2012, 02:35 AM	#19
Sornie Samante In Pursue of HAPPINESS Join Date: Jun 2011 Location: World Wide Web Posts: 199 Thanks: 71 Thanked 23 Times in 20 Posts Social Networking Contact Info	Re: What is an ideal CTR? thanks for this thread good ideas are just pouring in.. I am really new to PPC so I dropped here to read the entire thread. Thanks so much guys.