Friday, December 28, 2007

Google AdWords Tips | CTR isn’t everything

Never let anyone tell you click-thru rate is the be-all end-all of AdWords analysis. Smile and notify them that they’re not seeing the entire picture.

Clicks are great, but if your traffic doesn’t perform your most wanted response (MWR), then you just lost money. I know of few marketers who want to pay Google to give them traffic that simply pokes around and then wanders off.

WE pay Google to give us traffic so we can provide them information and eventually help them make a purchasing decision.

Take a look at this:

Google AdWords Tips - CTR and Conversion

Some people may automatically choose the loosing ad because more people are clicking on it.

Remember, this doesn’t capture the whole picture.

It turns out that the winning ad has a much smaller cost per conversion, a critical piece of info.

To ultimately decide which ad would better suit you, you must include your profit margin and look at what you are able to afford. Here’s what to think about:

  1. If your margin is large, sheer masses of sign-ups may benefit you more because this of course leads to more sales.
  2. If your margin is small, you want to maximize the efficiency of acquiring customers, which means you might want to focus on conversion rates.

So now if anyone gives you some weakly constructed argument only involving click-thru, you can toss these lemons right back at them.

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