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Welcome to Unit 2. Clicks and CTR: Designing and Placing Your Ads.
In the first unit, we discussed CPM and CPC
and the value of your inventory to advertisers. In this unit, we will explain
how clicks contribute to your overall revenue
and how you can choose ad locations and styles
that are easy for users to interact with, but do not interfere
with your content. The most common measurement for click activity
is clickthrough rate or CTR. CTR is the number of
ad clicks divided by the number of impressions, page views, or queries
you received. CTR equals clicks,
divided by the number of impressions, views, or queries,
multiplied by 100 percent. For example
if you received seven clicks and one thousand page views,
your CTR would be .7 percent. As we mentioned,
CTR is just one of the three key components of your revenue
in addition to CPC and CPM. In the following lessons, we will share various
techniques for making
ads visible and easily accessible for users who are interested in your ads.
Keep in mind though that your high-quality content is what will keep users returning
again and again. The goal of this unit is to share best practices
around ad location and ad format that can help users
interact with your ads when they want to. Let's get started!