For example if you have 100 views to your ad, and 10 clicks during those 100 views, you would have a 10% CTR. That is a great amount for an advertiser in a competitive arena. If you are the only advertising, 10% is an average amount. Most of my campaigns are between 1% and 8%.
Keep in mind that CTR can fluctuate heavily based on what other advertisers are bidding that day. Also keep in mind that if you can afford to advertise the same amount for the entire month, you will probably have a higher CTR during the end of the calendar month.
Some advertisers have a monthly budget that they spend in the first few weeks of the month. Therefore towards the end of the month there are usually less advertisers to compete with, you get less expensive clicks, and your ads are shown towards the top of the page and are more likely to get clicked.
CTR is especially important when advertising on Adwords because Google filters ads not just based on CPC (cost per click) but also on CTR. If you have a medium CPC but a high CTR, you will usually be shown above someone with a medium-high CPC and a low CTR.
To increase your CTR, try writing more effective ads, use keywords in your ad copy and create multiple ads. Then remove the ads that are not performing as well as you would like.
Google will chose the best ad and show that ad the most often. However, they will still show other ads to decide which is the best.
Learn more by reading about Yahoo Publisher Network, Bizrate-Shopzilla and CJ.
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