What Is CTR?
Have you ever wondered how clicks contribute to your overall revenue and how you can choose ad locations and styles that are easy for users to interact with but do not interfere with your content? The most common measurement for click activity is Click Through Rate or CTR.
CTR is the number of ad clicks divided by the number impressions, page views or queries you received. CTR equals clicks, divided by the number of impressions, views or queries, multiplied by 100 per cent. For example, if you received seven clicks and one thousand page views, your CTR would be .7 per cent.
As mentioned, CTR is just one of the three key components of your revenue in addition to CPC and CPM. In the following lessons, we will share various techniques for making ads visible and easily accessible for users who are interested in your ads.
Keep in mind though that your high-quality content is what will keep users returning again and again. The goal of this unit is to share best practices around ad location and an ad format that can help users interact with your ads when they want to.
What Is CPC & CPM?
The world of online advertising is filled with acronyms. CPC, CPM, RPM and the list goes on. While these acronyms represent important metrics, it can be hard to know where to start when it comes to increasing these values and ultimately increasing your revenue. It’s also the case that many of the common acronyms used in the online advertising industry can sometimes mean different things depending on the context and the usage, which can be really confusing. Let’s walk through the most important ones right now, starting with CPM.
CPM stands for cost per 1000 impressions. From the advertiser’s perspective, CPM refers to the price they are willing to pay to serve one thousand impressions of their ad. So, in the adsense auction, if an advertiser bids a CPM of two dollars, this means, he or she is willing to pay two dollars for every thousand times the ad appears to a user. You may have noticed that there are no CPM values in your Adsense reporting. In adsense performance reports, we use the Acronym RPM, which stands for revenue per 1000 impressions.
Since ads are not displayed in even bundles of one thousand impressions, all impressions served on your site, regardless of the bid type, are combined and averaged in your reporting to show your effective revenue per 1000 impressions, or RPM.
To recap, RPM is an Adsense only term used to report your impression based revenue. CPM is an industry-wide term that refers to impression-based bids from advertisers. The next acronym to know is CPC. CPC stands for Cost per click. The cost per click is the price an advertiser pays each time a user clicks on an ad. In your reporting, CPC metrics show the revenue you receive each time a user clicks on an ad on your site.
Two new bid types will become increasingly popular down the road. The first is CPE or cost per engagement. With engagement ads, the advertiser pays only when a user interacts with the ad in a particular way beyond just clicking on it. These ads are largely video and rich media ads. The other new bidding metric is the active view CPM. With active view CPM bidding, advertisers bid on one thousand viewable impressions and only pay for impressions that are measured as viewable.
That is when at least 50 per cent of the ad is displayed on screen for at least one second. As these new bidding types become more common, we will continue to provide more information on them, including in your Adsense reporting. In this unit, we will focus on the changes you make to your ad set-up to attract higher-paying ads from advertisers that could have had a direct impact on your ad unit CPM and CPC.
Tips To Increase Google Adsense CTR
TIP 1: Always Optimise With Google Adsense Guidelines In Mind
Never take any step which is against Google Adsense Guidelines. Google Adsense guidelines simply suggest that publishers should never force the visitors on the website to click on the ads. Or, may ask users to click on the ads in any direct or indirect way.
This may ban your Google Adsense account without any beforehand warnings. Moreover, Google also wants publishers that they should not hide any identity of the ad in front of the user. Thus, at the time of clicking, somewhere it must be mentioned that clickable link is an advertisement but not the product or service of the website thereof.
TIP 2: Always Optimise With Mobile-First-Indexing In Mind
For almost all niches in the text and video-based data websites and videos, 80% of the traffic always happen to be delivered from the mobile devices. Thus, your website must be designed keeping in mind the mobile optimisation.
Google ads must also be placed keeping in mind the Mobile-first-indexing. For example, there is no point of placing Google Ads on the website in a manner that it looks best when viewed from the desktop, laptop or PC. And, it looks annoying when viewed from the mobile.
TIP 3: Must Put An Ad After 1st Paragraph
The position after the 1st paragraph is the most engaging overall. If you seriously want to increase your CTR and not have ads placed just below the 1st paragraph, then you’ve already started to lose bucks. CTR may change dramatically after placing the ads just below the 1st paragraphs.
While following this trick, no changes may be observed in the CPC, but CTR is surely going to be affected. While doing this, all you need to keep in mind is that the last line of your 1st paragraph and the 1st line of your second paragraph must not advise or force users to click on the ads between the two.
TIP 4: Must Put Two Ads Within Content
You may have already noticed it, if not with the ads, then maybe with the other pages interlinks. Site-wide links on the website never get much attention in comparison to the in-content ads. They are more clickable.
Same is the case with the Google ads as well. Ads placed in the site-wide links never receive as many clicks as received by the ads that are placed inside the pages’ contents. Maybe because of the visibility.
TIP 5: Keep An Eye On Ad-Blocking
There are hundreds of different kinds of Ad-Blockers all around. It’s a different issue that you must keep an eye on ad-blocking. But, at the same time, you must admit that nothing impacts Click Through Rate in Google Adsense more than having no ads on your website.
Wondering? You should not. Because that’s what Ad-blocker does. It just blocks the ads on your website so that no advertisements are visible on the portal. If not visible, obviously, where will users click?
There must be no broken links on your website i.e. Zero broken links. But, you cannot have zero interlinks on your website, otherwise, bounce rate as shown in Google Analytics may shoot upto 100% even. In case, all the visitors to your website will bounce back to other websites after going through the landing page of your blog.
Thus, interlinking is necessary but, must never be done with the help of plugins. Even the best plugins cannot interlink the blocks in the manner they should be.
Manual interlinking is the best method to go through. While interlinking also keeps in mind that it should not be done in a manner that all the visitors are moving to another page of your website from the landing page without having ads visible to them.
For example, it may happen with the popup containing the link to another page of your or someone else’s website which may cover the whole screen and the ads may not be visible to the users.
TIP 7: “Text & Image Ads” Works Best
Keeping the prior experiments by fellow bloggers in mind, the most clicks if received by any type of ads is – Text and Image-based ads. Undoubtedly, images capture 1000 times more attention of the visitors in comparison to the text-based ads.
TIP 8: Color of Ads
Red colour has a maximum wavelength of near around 625-740 nm. And, Newton’s theory is going to help us increase our Google Adsense CTR. Ever wondered why the medial sign or stop signal or any other warning signal is there red?
It’s mainly because the red colour has the highest wavelength, it can easily be visible from the distance. So, if because of cache, if there is something of users’ interest displayed in the ads and it is visible to the user from the distance, undoubtedly you may get more clicks and thus may generate better revenue.
TIP 9: “Sponsored” Instead Of “Ads By Google”
Yes, you can do that and it’s not illegal. Just in the top left corner of any google ad, you may have seen that “Ads by Google” is written. Although this is a manipulation trick but not against the Google Adsense guidelines. Because you are just letting the user know about the fact that the next link is a Google Ad.
NOTE: Always remember, if there are 10 things you can do to increase the Google Adsense CTR, then there will not be more than 5 good ways to increase CPC. Indirectly, CPC is more in the hands of Google, than publishers’.
Tips To Increase Google Adsense CPC
TIP 1: Type Of Ads Unit
Cost per click is all about bidding. Take an example, if your website is all about cars and auto drives. Following the fact that your website is authorised and is having a good chunk of traffic, both BMW and Tesla has a will to advertise on your website. (Ignore the fact that Tesla never invests a penny in advertising for now:). ) Now, both BMW and Tesla will go to Google and say – “Hey, the giant of a search engine, I am willing to advertise about my products and services on the header of www.yourwebsite.com.”
But, there is a problem that there is only one header on the website. In this case, bidding works the best. Now, to avoid conflict, Google will ask both BMW and Tesla to participate in bid auction. One who is willing to pay higher will get a chance to show his ads in the header section of www.yourwebsite.com.
This way, if you are also placing the high CPC ads on your header or just after the 1st paragraph, then you have your revenue increased instead of placing some low CPC ads. Because high CPC ads will generate more revenue with the same number of clicks and kind of engagement in comparison to low CPC ads. Thus, take care.
TIP 2: Country
This is another most important factor to keep in mind. It mainly depends on how much advertisers in that particular country are willing to bid for the ads. Undoubtedly, it is much lesser in India in comparison to other countries like the United States, Canada, Countries in the UK and UAE (United Arab Emirates).
TIP 3: Platform
Although least, but CPC is also affected by the fact that your website is being accessed by mobile, laptop or desktop?
TIP 4: Niche
This factor most affects the CPC of any website/adsense. The best high CPC niches are –
- Insurance $58 CPC
- Gas/Electricity $54 CPC
- Mortgage $47 CPC
- Attorney $47 CPC
- Loans $44 CPC
- Lawyer $42 CPC
- Donate $42 CPC
- Conference Call $42 CPC
- Degree $40 CPC
- Credit $38 CPC
TIP 5: Timing Of The Year
According to Google, Cost per click depends more on the markets, and less on what kind of ads are shown on your website. Thus, “CPC can fall at the beginning of each quarter when marketers are shifting budget. When troubleshooting changes in CPC, it’s good practice to extend the date range of your reports out to a year.”
Following this fact, you may get lower CPC in the first four months i.e. January, February, March and April and then the CPC may increase, thus RPM and thus your earnings in Google Adsense.
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