3/30/2010

what is CTR, click-through rate

click-through rate (CTR)

Definition

The average number of click-throughs per hundred ad impressions, expressed as a percentage.

Information

It is important to distinguish what a click-through rate does and does not measure. The CTR measures what percentage of people clicked on the ad to arrive at the destination site; it does not include the people who failed to click, yet arrived at the site later as a result of seeing the ad.

As such, the CTR may be seen as a measure of the immediate response to an ad, but not the overall response to an ad. The exception involves ads that display no identifiable information about the destination site; in these cases the click rate equals the overall rate.

Merely getting visitors to a site had value when Web site traffic was generally accepted as a measure of success. The trend towards profitability, along with better tracking tools, has resulted in less interest in click-through rates and more interest in conversion rates.

A high click-through rate does not assure a good conversion rate, and the two rates may even share an inverse relationship. An advertisement geared towards curiosity clicks will result in fewer sales, percentage-wise, than an advertisement geared towards qualified clicks.

what is CPC, cost-per-click

Definition

The cost or cost-equivalent paid per click-through.

Information

The terms pay-per-click (PPC) and cost-per-click (CPC) are sometimes used interchangeably, sometimes as distinct terms. When used as distinct terms, PPC indicates payment based on click-throughs, while CPC indicates measurement of cost on a per-click basis for contracts not based on click-throughs.

For example, consider a campaign where payment is based on impressions, not clicks. Impressions are sold for $10 CPM with a click-through rate (CTR) of 2%.

1000 impressions x 2% CTR = 20 click-throughs

$10 CPM / 20 click-throughs = $.50 per click

admagnet publisher, a biggest competitor of adbrite

Today I found that a new ad publisher, called admagnet.net / admagnet.com, which is a most popular publisher in the world. Admagnet is CPC network.

I have checked the its alexa rank, which is within top 500. Wa, biggest publisher. It will be one of biggest competitors of Adbrite.com (which rank is within Top 1000) in future.
http://www.alexa.com/siteinfo/admagnet.net (accessed on March 30, 2010)
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Traffic Rank Change
Yesterday 351 -82
7 day 379 +33
1 month 351 -71
3 month 396 -86
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http://www.alexa.com/siteinfo/adbrite.com (accessed on March 30, 2010)
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Alexa traffic rank for adbrite.com:
Traffic Rank Change
Yesterday 842 -155
7 day 932 +33
1 month 876 -28
3 month 910 -14
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But till now, I have not tried their service. I will give more review or comments for you after I try it. Please wait. The following is some introduction from their site ( Taken from http://admagnet.com/aboutus.html):

Ad Magnet, the ad network launched by DGTL Media uses proprietary 4th generation ad serving technology to aggregate billions of ad impressions across categories, create audience segments and help advertisers reach highly fragmented Internet users.

Ad Magnet provides a completely transparent platform for advertisers to tap into audiences across sites by various categories, surfing habits, context and other similar features.

Ad Magnet’s state of the art inventory monetization platform uses proprietary longitudinal research algorithms to enhance advertiser performance and maximize publisher revenue. Hosted on Rack Space and a number of CDNs, Ad Magnet delivers an uninterrupted, robust and state of the art feature laden platform. Ad Magnet has the expertise of working with a large client base across categories like Finance, E-Commerce, Automobile, Travel, FMCG and Education.

Ad Magnet is backed by Sequoia Capital, a leading venture capital firm in India whose investments include Applabs, First Source, Cafe Coffee Day, Global Logic, Indiatimes, Travelguru and Shaadi.com. Globally, Sequoia Capital has been an early investor in leading technology and internet companies such as Google, Yahoo, Apple, Oracle, Cisco, Paypal and Youtube.