One of the main drawbacks of using PPC as a traffic source is the cost of PPC. PPC can be very expensive, but you can reduce your costs by paying attention to your click-through rate (CTR). A good CTR will lower your costs and allow you to earn money online. However, I would add that you need a substantial budget if you want to use PPC. So what is click through rate? Let’s say 100 people do a search like ‘lose weight fast’ and 5 out of 100 people click on your ad. Your ad would have a CTR rate of 5%. For such a general term, this would be an extremely good CTR and one that would make money.
CTR is a very important aspect of PPC as it will determine how much you will actually pay for PPC. While the search engine PPC tool will suggest a bid price, your actual cost will decrease as time goes by, depending on your CTR rate. The more successful your CTR is, the cheaper it will be. PPC is all about traffic and how much you get. You need to make sure you have the traffic to make it relevant for PPC.
If you use Google, for example, you should always try to get a high CTR because Google uses CTR to give you a quality score. This will not only determine how much you have to pay but how high you appear in the search engine
If your ad isn’t relevant, potential customers won’t click on your ad. Your CTR will drop and you will be asked to pay higher and higher prices per click. If you’re not careful, the high CTR will put you out of price. AdWords provides full CTR details, so use it and remove unprofitable keywords.
Therefore, it is important to know the CTR and that it is measured word by keyword. It is quite possible to have a good CTR on one keyword and a very low CTR on another. This is why it is imperative to monitor your campaigns and remove all keywords that have a low CTR as it will still cost you over a period of time. Your goal is to make money online, you need to work on it.
The best way to achieve high CTR is to write the type of ad copy that would make your readers want to read your ad, and then initially make sure that the offer price allows potential customers to see your ad.