CTR: Called the Click Through Rate, this is simply a method of evaluating the effectiveness of an ad on AdSense. It is simply the number of times an ad is clicked divided by the page views on which the ad appears. So if we have an ad running and 100 people view it but only 10 people click on it, the CTR is 10%. A high CTR does not mean high ad revenue for you. The matrix here to be seen is Pay Per Click.
PPC: So what is the funda of Pay Per Click? Well, AdWords is an auction based system where advertisers specify how much they are willing to pay for an individual who clicks on their ad which leads and directs the user to their site. The advertisers who pay more get more traffic diverted to his/her site. To increase the effectiveness of your advertising campaign, one must concentrate on Keywords. Instead of broad keywords, narrow your keyword type. This will give you a sharper position and decrease your bounce rate. It will get only the right people to your site and increase the effectiveness of your ad campaigns.
Using Effective Keywords: Use long tail keywords, these increase the effectiveness of the purchase process and results in higher conversions. Use plurals in your keywords and also use negative keywords. Negative keywords tell you where your ads should not appear.
Effective Landing Page: Make sure that when the user clicks on your ad, the landing page is not the home page. If you have talked about a discount offer, then the landing page should be a page that in simple terms talks and elaborates the offer. Landing on the home page will just confuse the user and will not add any value to the ad offer. Also, make sure that you highlight your phone number effectively on the landing page.
Correct Targeting: Make sure that your targeting is precise. If you are targeting multiple countries, you need to set up ad groups for each country. Use geo specific features and gender and age targeting. Even a small increase in CTR and PPC can improve your campaign and it’s effectiveness by miles.