CTR dropping quickly

was high at the start - now going down

[idolw]

i am new to adwords - set up a new account a couple days ago.

I have 3 campaigns running simultanuously - I am experimenting with various ads to see how it goes. what I am noticing now is that CTR of my ads is dropping steadily.
Did you have the same on the start? Perhaps, new users get a bonus to get used to high CTR and increase CPC on later stage?
Or shall I just treat it as the competition altering their ads to new situation?

[Dr_X]

it might be since your ads are only a few days old, the google algo had to see how many clicks you get for what you have, then look at how much you're offering per click, and what cap you set on it (budget) and is now making adjustments to make sure you don't go over that cap.

or... could be what you said :-P

-Dr.X

[AdWordsAdvisor]

Another explanation, especially if you're getting a small number of impressions is that, early on, if you get any clicks at all it can seem that you have a very high CTR. But it isn't statistically valid.

For example if after a day you have 25 impression and 2 clicks, you'll have an 8% CTR, which seems really high. But really, the two clicks could just be excellent luck, and might not represent a pattern. It's just too early to tell.

So later, say at 1000 impressions you might have 10 clicks, which is just a 1% CTR.

I'd say it's good to let your impression get into the 500 to 1000 range before you start seriously evaluating your CTR.

Just my $0.02. ;)

AWA

[idolw]

AdwordsAdvisor,
thanks for your comment. the explanation makes sense, but only when I look at my global stats. when doing a day by day comparison, the theory collapses, though :(
I am rather tiny or even micro player, and do not believe that my bids would change reality for my competitors.
Any more ideas?