Something I have been wondering for a while. Does the click through rate influence the cost per click in any way?
My data do not support that hypothesis. I have found absolutely no correlation between ePC and the CTR. I'd show you a graph but it probably would run counter to TOS, suffice to say the points make a big blob with absolutely no trending at any order. Edited: Well, that's not exactly true...for n points, I could probably fit an (n-1)th order curve through them LOL Edited Again: Nope, scratch that, that's not possible when identical x values can produce multiple varied y values. Nevermind!
This depends... If with higher CTR you generate more conversions, you will get the same CPC rate. But if you generate more clicks that don't convert (because Ads are near a menu or ads don't look like ads), the CPC will decrease. It is "smart pricing". I think when "advance" adwords see low conversion on a website, they blacklist the site and you will lose the hightest CPC.
If there WERE an effect I think it would be on the other end...high CTR leading towards lower value clicks. What Skouk says has some merit, but only if that one advertiser were your only one...which it's not. Several advertisers for each ad block, many possibilities of which one gets clicked this time or that and the whole thing sort of cancels itself out going to a non-relationship.
Thanks guys. I was just wondering. One of my sites got hammered by shoutwire today. Unfortunately I realized this too late before I removed some of the ads (to increase linkability and avoid mindless clicks). Just wondering if there was any correlation.