Why Click:

Google Adwords pay Per Click Program ... learns about CTR CTR means click through rate and only Google of all the Pay per Click search engines operate using CTR. It is vital to understand this if you want to achieve the following ....Lowest possible CPC (cost per click) Consistent with highest possible rank position. It is best to use an example ... Lets assume you and your competitor both bid $1 for same keyword ... say pond pumps which of these 2 bids will rank higher? ... Answer, the one with the higher CTR. The relationship between CTR and position is dependent upon the two variables multiplied together i.e. (your CTR x your bid) Lets' put it another way ... I get a 1% CTR for my keyword pond pumps. This means of every 100 people who saw my ad 1 person clicked through and that cost me $1.00. On the other hand my competitor who also bid $1 had a CTR of 2%. So my competitor can lower his bid to $0.50 to get the same position as me and if he bids $0.51 (only 1 cent more) he will get the position above me. Now that's a bargain Google rewards high CTR by increasing the position of my ad so more people see the ad and this means that there will probably be an even better CTR the next day.