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What is CTR, and how is the rate of click ads calculated? Many business owners and marketers who have just entered the field are looking for answers to these questions. It is clear to everyone that in the era of communication and technology, an active presence on the Internet and virtual networks is vital for business prosperity and is inevitable. Advertising in this space is one of the effective ways to attract customers.

Because advertising in this space is an opportunity to reach the largest number of audiences at the lowest cost, however, among the types of Internet advertising methods, one of the most common and cost-effective is click advertising, which of course, has various methods and models. Still, in simple terms, it is an advertisement in which the advertiser pays an amount for each click. However, the rate of click ads and how they are calculated are matters that we will explain further.

How is the click advertising rate calculated?

Click advertising or pay-per-click is a way to calculate the cost of advertising on the Internet and virtual space. But everything is not always that simple. In many cases, the price of advertising campaigns changes for various reasons, such as the volume of traffic and the level of competition, even the geographical location and the hours of presentation of ads.

However, to provide a specific formula that determines the rate of click ads, in most cases, the total cost is divided by the total clicks to get the final amount. Regarding how each click is priced in this advertising method, it should also be discussed that a fixed and specific amount may be charged for each click. In some cases, the price is determined with the help of auctions and suggestions from users.

The clicked advertising rate will vary depending on the keyword’s value, the desired campaign’s size, and the advertised industry. Still, the real value of the click advertising rate depends on the visitors and the income generated from these visits. The rate of click advertising is determined in proportion to the income it generates for the advertiser.

What are the differences between determining the fixed rate of click ads and the auction method?

In most cases, advertising providers have a specific table of their click advertising rate, which specifies the price of advertising in each part of the network or virtual space they have. This rate is fixed. Still, this fixed rate depends on the content of the page. It attracts visitors, and of course, whether the attracted audience is considered a professional audience for the desired product or not will be a little different.

In the fixed-rate method, the advertiser and the advertisement provider agree on a specific amount. Still, the more accurate the targeting and the more clicks lead to the purchase of the product, the higher the click advertising rate will be.

How is the click advertising rate determined using the auction method?

In the auction method, according to the contract signed between the advertiser and the ad displayer, the given ad and keyword will be put into competition with similar words and ads of the same display. Any advertiser who offers a higher price per click in a certain position will be given priority to display the ad in that position.

How is the rate of click ads determined in search engines?

It is not an exaggeration to say that the most important place for key ads is search engines, especially Google Adwords, so how the rate of click ads in this search engine is determined is an important and useful point. In general, the rate of click ads in Google is determined by keyword, but the final rate will differ depending on whether the advertiser is looking for an ad per visit or click. But most advertisers prefer to click ads to visit ads.

How do we increase the effectiveness of click ads?

Try multiple ad content samples side by side.

Many click ads users display several ad samples with different designs to finally find the best and most attractive ad sample and reach their goal. Note that the smallest changes, such as color and font, are also effective in attracting the audience.

Set a ceiling for the cost of your ads.

The most optimal method to determine the tariff of click ads and the cost that is supposed to be spent on click ads is the 5 to 1 method. This means that for every dollar spent on ads, we should earn 5 dollars. So, to avoid wasting money, Ads Set a specific ceiling for your click ads.

Improve the quality of your ad page in the best possible way.

Of course, no advertiser wants the audience to leave the page without any reaction as soon as they encounter the page, so for the advertisement to be effective and reach its goal, try to design and present an attractive and clear appeal. Your call to action should connect with the audience and, at the same time, offer them attractive and genuine offers.

Always focus on a specific product or service, avoid complexity and crowding, and simultaneously present several options. Do not neglect the design layout and attractive headlines. Of course, remember that the desired headline should be honest and present the most important feature of your product or service. Otherwise, it will have a negative effect.