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15th June 2011 |  Written by

Google introduces new CTR metric for the content network

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Yesterday, Google announced the introduction of a new Click-Through-Rate (CTR) metric known as Relative CTR.

You can see the official release here.

Relative CTR will show you how your ads are performng relative to other ads running in the same places on the content network (GDN), allowing you benchmark your ads performance across the Display Network. For example, if your ads have a CTR of 0.04%, while the other ads in the same places on the content network have a CTR of 0.02%, your Relative CTR is (0.04)/(0.02) = 2x.

Why have Google done this?

At first glance, a CTR of 0.04% may seem very low. If you knew that this was actually twice the CTR of other competing ads, this tells you that your ads are actually performing, on a CTR basis, better than the other competing ads on the same page.

This means that your ads matche the websites they are appearing on and that your audience is responding to your message.

On the other side, you may see that your Relative CTR is 0.5x, which means that your ads are only getting half of the average clickthrough rate compared with other competitors. This means that you may be able to improve performance by refining your ad creatives.

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