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Why the obsession with CTR?

Surely a high CTR is a Bad Thing...

         

dmorison

7:03 am on Apr 12, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



A complete AdSense outsider here, but I can't help noticing that a lot of AdSense threads that come through are about how you can increase your CTR.

Surely, if anything is going to trip Google's "Made for AdSense" filter, followed by an algorithmic attempt to reduce your overall earnings, then a high CTR is it.

Putting aside the accuracy of targetting, Google have 2 very good indicators of site quality that can be cleaned from the AdSense serving process. The first is the average period between serving the ad and the subsequent click-through (P); and the second being click-through-rate (C).

Low P and High C = Made for AdSense = Reduced earnings

High P and Low C = AdSense on unsuitable page (e.g. Photo Album) = Reduced earnings

Average P and Average C = Quality site = Maximum earnings.

Remember that Average P and Average C can be gleaned from premium partners with whom Google is in greater control than "public" AdSense users.

All IMHO - could be completely wrong of course!

nuevojefe

8:08 am on Apr 12, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Remember that Average P and Average C can be gleaned from premium partners with whom Google is in greater control than "public" AdSense users.

Remember that google makes a lot of $$$ from "made for adsense" sites.

dmorison

9:42 am on Apr 12, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Remember that google makes a lot of $$$ from "made for adsense" sites.

I don't doubt that they do! I'm just theorising how maximum earnings for an individual website may come from keeping P and C within reason rather than simply trying to maximise click-through-rate; resulting in a net decrease in earnings.

oddsod

10:04 am on Apr 12, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



dmorison, a few issues with this.

1. Premium partners are not the best indicators. They have a different readership to hobby sites; different loyalties among the readership, and different trust issues when it comes to advertising.
2. High CTR does not disclose very much. CTR can change from placement of ad unit - I can't see Google penalising for that.
3. Average time to click and Average CTR does not necessarily equate to "quality site" ...whatever that is. It could be a scraper site with an ill-considered Adsense placement. There are other scenarios where the average figures won't indicate a quality site.
4. High time to click and low CTR is typical of forums. It's what Brett would likely get if he put Adsense on here. It doesn't indicate anything about reduced earnings. These clicks may convert very well. If I see a hosting ad on here time and time again I'll ignore it till I'm looking for hosting. Then I may well return to a thread just to see the ad and buy the service.

There is no doubt that Google has a lot of metrics at their disposals. It is highly likely they use the metrics for all kinds of things. But, basing payout on the above criteria wouldn't make sense when they have something more obscure (and less argue-able) in Smart Pricing. ;) i.e. it can be marketed as fair, objective, and less prone to quirks in individual site's placements & colour. That many areas have no way of tracking conversions (high value goods, services like legal and medical etc) seems to be the major hole that nobody focuses on. If Google doesn't have conversion rates for some areas they must use some arbitary method of their own choosing - which they don't disclose. It's all hidden behind the Smart Pricing curtain.

birdstuff

11:52 am on Apr 12, 2005 (gmt 0)

10+ Year Member



It's all hidden behind the Smart Pricing curtain.

The smart pricing curtain is actually a smoke screen.