Impressions, Clicks & CTR ... how are they related?

rolandlowe · 02-20-2011, 12:06 PM

Impressions, Clicks & CTR

I see these three terms being thrown around in many of the threads.

I'd like to better understand them better. I know their definitions but what escapes me is how they relate to each other. So would someone be kind and explain their relationship as it applies to CPA marketing. Even pointing me to a good post would be fine.

Thanks.

Jonathan Beaton · 02-20-2011, 04:47 PM

Quote:

Originally Posted by rolandlowe

Impressions, Clicks & CTR

I see these three terms being thrown around in many of the threads.

I'd like to better understand them better. I know their definitions but what escapes me is how they relate to each other. So would someone be kind and explain their relationship as it applies to CPA marketing. Even pointing me to a good post would be fine.

Thanks.

Impressions - Ad Views (your ad appeared 1000 times = 1000 impressions)

CTR - Click Through Rate: If you ad appeared 1000 times and you had a CTR of .2%, that means your ad was clicked twice.

.2%*1000 = 2

lamandy · 02-20-2011, 08:44 PM

Quote:

Originally Posted by Jonathan Beaton

Impressions - Ad Views (your ad appeared 1000 times = 1000 impressions)

CTR - Click Through Rate: If you ad appeared 1000 times and you had a CTR of .2%, that means your ad was clicked twice.

.2%*1000 = 2

yah, that's correct

sith005 · 02-20-2011, 09:02 PM

Also, CTR is one of the biggest factors when determining your CPC. Your ads with higher CTR will typically get you cheaper clicks.

rolandlowe · 02-20-2011, 10:48 PM

@Jonathan
Thanks for the breakdown.
So what I'm suppose to remember is the following formula: c=IC or CLK=IM*(CTR%)
ergo
clicks=Impressions*CTR(which is denoted as a percentage.)

Cool.

@sith005
How is that? That is one of the points that confuses me.

sith005 · 02-20-2011, 11:36 PM

Ultimately the provider (be it Google, Facebook, etc) is looking to provide a positive experience for their customers/users. One of the ways they rank their users' experience and approval of ads is click through rate. If your ad is showin a high ctr, that says to them that users who see your ad must like it. If your ctr is lower, they assume users aren't taking to your ad very well.

If it appears that their users like your ad (you are getting a good ctr) the network (Google, Facebook, Adcenter, etc) is more inclined to show it, and additionally, they will reward it by charging less per click. They want it to be shown more since it appears their users like it, and their goal is to keep their users happy by providing a positive experience.

This differs from network to network a bit. For example with Google, your site's content plays a role too. But for Facebook, it's really ultimately all about the CTR.

02-20-2011, 12:06 PM	#1
rolandlowe Warrior Member Join Date: Jan 2011 Posts: 14 Thanks: 3 Thanked 0 Times in 0 Posts	Impressions, Clicks & CTR ... how are they related? Impressions, Clicks & CTR I see these three terms being thrown around in many of the threads. I'd like to better understand them better. I know their definitions but what escapes me is how they relate to each other. So would someone be kind and explain their relationship as it applies to CPA marketing. Even pointing me to a good post would be fine. Thanks.

02-20-2011, 09:02 PM	#4
sith005 HyperActive Warrior War Room Member Join Date: Sep 2009 Location: Silicon Valley Posts: 212 Thanks: 34 Thanked 109 Times in 73 Posts	Re: Impressions, Clicks & CTR ... how are they related? Also, CTR is one of the biggest factors when determining your CPC. Your ads with higher CTR will typically get you cheaper clicks.
	PPC-Coach Helped Me Become PROFITIBLE Find Out How Here!

02-20-2011, 10:48 PM	#5
rolandlowe Warrior Member Join Date: Jan 2011 Posts: 14 Thanks: 3 Thanked 0 Times in 0 Posts	Re: Impressions, Clicks & CTR ... how are they related? @Jonathan Thanks for the breakdown. So what I'm suppose to remember is the following formula: c=IC or CLK=IM(CTR%) ergo clicks=ImpressionsCTR(which is denoted as a percentage.) Cool. @sith005 How is that? That is one of the points that confuses me.

02-20-2011, 11:36 PM	#6
sith005 HyperActive Warrior War Room Member Join Date: Sep 2009 Location: Silicon Valley Posts: 212 Thanks: 34 Thanked 109 Times in 73 Posts	Re: Impressions, Clicks & CTR ... how are they related? Ultimately the provider (be it Google, Facebook, etc) is looking to provide a positive experience for their customers/users. One of the ways they rank their users' experience and approval of ads is click through rate. If your ad is showin a high ctr, that says to them that users who see your ad must like it. If your ctr is lower, they assume users aren't taking to your ad very well. If it appears that their users like your ad (you are getting a good ctr) the network (Google, Facebook, Adcenter, etc) is more inclined to show it, and additionally, they will reward it by charging less per click. They want it to be shown more since it appears their users like it, and their goal is to keep their users happy by providing a positive experience. This differs from network to network a bit. For example with Google, your site's content plays a role too. But for Facebook, it's really ultimately all about the CTR.
	PPC-Coach Helped Me Become PROFITIBLE Find Out How Here! Last edited by sith005; 02-20-2011 at 11:37 PM. Reason: mispelling