During the first 1000 impressions, how CTR is calculated?

[ninhld]

As I understand, CTR for each keyword is calculated based on last 1000 impressions.
During the first 1000 impressions, how CTR is calculated?
Is it set to a default value such as 1% or something like that?

[AdWordsAdvisor]

Actually, the CTR for a keyword is calculated every single time that keyword has an impression and/or click.

(I'm pretty sure you are thinking of a different thing: the fact that a keyword can be disabled after 1000 impressions for an individual keyword - or that an account can be 'slowed' for its most recent 1000 impressions for all keywords combined, if the minimum CTR standard has not been met.)

When you enter a new keyword, you are correct that it has no history. So the AdWords system gives it a moderate CTR to get it started. However, as soon as it has had even one impression and/or click, then it has its own 'earned' CTR.

For example, if the keyword has one impression, and one click, you have a 100% CTR (Yippee!). If it then goes on to have 10 impressions and one click, it has a 1% CTR, and so on, and so on, and so on.

In other words, the CTR changes with every impression and click from then on out.

Hope this makes sense

[vibgyor79]

>>> So the AdWords system gives it a moderate CTR

What exactly is the moderate CTR? Is it the average of CTR of all the advertisers for that particular keyword? I presume the moderate CTR will be different for each of the million keywords out there.

I had always assumed that the system assigns an initial avg position for the ad after considering the max CPC of the keyword and the average CTR of the advertisers for the keyword.

That's why I always pump up the max CPC of the keywords initially even if I cannot afford to pay that much for a click.

[eWhisper]

I'd have to agree with vibgyor79. I've seen new campaigns, instantly jump high in the rankings even though the bids are less than the competition. It seems the CTR is based on your overall campaign, or some CTR number within your account and not just some arbitrary number.

[ninhld]

However, as soon as it has had even one impression and/or click, then it has its own 'earned' CTR.

I dont think so, it must have at least 1 click, not 1 impression, then it could has it own CTR.

If it has only 1 impressions, but no clicks (and this happends almost 100% of the time), its CTR is 0%, and it will always be shown at the last place, even its CPC is $50/click. This is not logic.

[AdWordsAdvisor]

What exactly is the moderate CTR? Is it the average of CTR of all the advertisers for that particular keyword?...

Very sharp there, vibgyor79! You are correct, and to your statement I would add just one small detail:

It is the average of CTR of all the advertisers for that particular keyword, at the time you enter the keyword.

[AdWordsAdvisor]

Ninhld, you made a very good point in post 5. Let me check my thinking with a more technical person, and I'll post again when I've learned more.

This one may take me a day or two to track down, so thanks in advance for your patience.