CTR vs Total Spend (does it correlate)

Hello,

We are currently having a debate in the office. A colleague of mine says that there is a correlation between CTR and Total spend and that they do relate. I disagree with this, does anyone else have an opinion on this I'd like to see if he is wrong or right?

Thanks in advance.

CTR and Total spend are nearly in the same trend but not at all.
High CTR => High Total Spend but If low bid and high ROI that Great for every body.

Hi,

Thanks for your response. So would you say that the amount of money you spend should have no effect on your click through rate?

Well the more you spend the more your ad will shop and have more of a chance to get clicked on which would give you a higher CTR.... BUT... you could always be paying alot and no one clicking on your add which would give you a low CTR.

I think you both are right lol...

By paying more alone google will not reward you with a higher CTR.

There is a correlation between CTR and total spend but exactly what you make of that depends on how you are looking at it.

A high CTR does not mean a high spend just the same as a low CTR does not mean a low spend.

A Low CTR on an expensive keyword is still going to generate a high total spend.

A High CTR on a cheap Keyword is not going to generate a high spend.

As total spend is always proportional to the amount of clicks and the cost per click then CTR will always correlate to the total spend.

I think your disagreement relates more to the meaning of correlation than whether the two correlate.

If you send your ads out to content sites you might have a high initial CTR as regular visitors to those sites respond to your ad. However, if you keep running the same ad being seen by the same people your CTR will drop and you will have a hard time getting clicks. At that point competitors who have fresh new ads might have CTR that are higher than yours, and their CTR x bid will force you to a higher spend to hold the same CTR.

it's my new knowledge

It depends on a quality of pay per click campaings. I know companies, where CPC=$1 is OK and company from the same business sector where CPC=$0.3 is the maximum. And both have "optimized" campaigns. The second one spend much lower money maybe for the same CTR. But generaly I thing, what you save on the campaign you will miss in your earnings. I am writing about pay per click on my site payperclick.sk and i allways say, it is impossible to generalize CPC prices, Budget and so. It depends on competition and campaign quality.