Yes it does,
Higher the CTR higher would be your ad click rate, A high CTR is useful for both Publishers as well as Advertisers.
For Publishers a high CTR returns a higher revenue per ad click
For advertisers a high CTR of there ads reduces their ad bid amount

So a high CTR is good if it is coming from genuine sources, but mind you Google flags your account if the CTR fluctuates highly suspecting click fraud. So it is advisable to maintain a healthy CTR that is anything between .5 to 2.5% (not very sure, if anyone would correct me with exact details)

second that. The better the CTR, its better all round.

Are we discussing CTR per account, per site, per page, per channel ?

Please clarify.

If it's "per page" I disagree that a higher CTR results in higher revenue per click.

FarmBoy

"Are we discussing CTR per account, per site, per page, per channel ? "

I am also interested in the answer to this, and would add: per ad unit?, per ad?, and to those in the know of the major ongoing bug: per region? It would be helpful if future responses stipulated this. They are NOT all the same.

With all possibly due respect, shvmdhwn, since you have only made 5 posts and recently joined WebmasterWorld, I would be curious where you derive this apparently authoritative information?

"For Publishers a high CTR returns a higher revenue per ad click"

If you had said, "... returned a higher revenue per AD, or AD UNIT, or PAGE." I would have whole-heartedly agreed, but as stated, it sounds a bit contradictory with the fact that high CTR publishers pay less (from my experience).

As I've stated many times before, "GAd doesn't care if YOU lose visitors or at what cost, their ONLY optimization is to use your freely given ad impression to make (and split) the MOST advertiser money (even if it is 1 cent) per visitor/impression" learn it, live it, love it!

Because our site is so highly targeted (by page, to multiple closely related, but very popular topics) and our adsense ads are very fortunstely so precisely targeted (thank you G) with a large number of advertisers, we have had a CTR significantly higher than the mentioned range for many years, and our peak earnings were earned right after we came off our peak CTR (by a factor of about 30%) which was even higher than the above mentioned amount, based upon "PAGE CTR".

Now if you talk Ad unit CTR I would probably agree higher is better, however our peak earnings were when Ad Unit CTR was still well higher than the aforementioned 2.5%, albeit a few years ago. However, here is where the previously mentioned region bug comes in, as it seriously distorts this statistic, but I won't go into that (check my previous posts, if they re still available, if you're curious).

So what does this mean? Should one optimize by reducing to only the best producing ad units (track one channel per unit) up to a maximum CTR limit, and then add in trash ones to bring the page CTR back down to an ideal level?
Forgive me, I've pondered this many a late-night for multiple years now and have probably "recognized" many more patterns than truly exist.

For Publishers a high CTR returns a higher revenue per ad click
For advertisers a high CTR of there ads reduces their ad bid amount

Just doing the math:

• If the CTR increases, the publisher gets more money per click.
• At the same time when the CTR increases, the advertiser pays less per click.

So if CTR reaches a certain threshold, the publisher gets more money per click than the advertiser pays.

utter nonsense IMHO.

With all possibly due respect, shvmdhwn, since you have only made 5 posts and recently joined WebmasterWorld, I would be curious where you derive this apparently authoritative information?

Didn't get you properly, how many posts does it take before I start posting responses in the forum :)
I didn't derive this information from this forum. I am new here, but not new to the field.

"For Publishers a high CTR returns a higher revenue per ad click"

If you had said, "... returned a higher revenue per AD, or AD UNIT, or PAGE." I would have whole-heartedly agreed, but as stated, it sounds a bit contradictory with the fact that high CTR publishers pay less (from my experience).

Yes, I meant for a particular ad unit only but does that really matter in context to the question.

...fact that high CTR publishers pay less (from my experience).

Publishers Pay less?

Thanks for the welcome, catch you around.
:)

For Publishers a high CTR returns a higher revenue per ad click
For advertisers a high CTR of there ads reduces their ad bid amount

Just doing the math:

If the CTR increases, the publisher gets more money per click.
At the same time when the CTR increases, the advertiser pays less per click.
So if CTR reaches a certain threshold, the publisher gets more money per click than the advertiser pays.

utter nonsense IMHO.

The advertisers and publishers are matched according to their respective performance. This math you did is correct but the equation is wrong.