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

by rolandlowe
5 replies
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.
#clicks #ctr #impressions #related
  • Profile picture of the author Jonathan Beaton
    Originally Posted by rolandlowe View Post

    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
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    • Profile picture of the author lamandy
      Originally Posted by Jonathan Beaton View Post

      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
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      • Profile picture of the author sith005
        Also, CTR is one of the biggest factors when determining your CPC. Your ads with higher CTR will typically get you cheaper clicks.
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        • Profile picture of the author rolandlowe
          @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.
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          • Profile picture of the author sith005
            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.
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