Want Higher CTRs and Lower CPCs on AdWords?

Split-Testing Ads Will Greatly Improve Google Ad Performance

Oct 22, 2009

Split-testing Google ads will result in higher CTRs, cheaper CPCs, and lower costs per conversion for every ad running on AdWords.

Split-testing Google ads is guaranteed to improve an ads' click through rates, lower its CPCs, improve its placement on results pages, and lower the cost per conversion to the advertiser.

Google provides an incentive to write ads with great CTRs. An ad with a CTR that is higher than those of competing ads will be given preferential placement in search results without costing the advertiser another cent.

Higher CTRs and Lower CPC can Be Found Through Split-Testing Google Ads

To achieve the highest CTR possible, always run two similar ads at the same time. Make sure the AdWords software is set to show each ad an equal number of times, and then let the ads run for a few days. Instructions on how to change this setting are given below.

Once each ad accrues around 30-50 clicks, examine their stats side by side. A larger sample enhances the reliability of the statistics, but waiting for that many clicks can waste valuable time that could be better spent writing more ads.

There is an effective tool at SplitTester.com that will calculate the odds that the winning ad won by pure dumb luck or actual statistical superiority.

From the campaign tab, click the ad tab and look at the CTR and the Cost Per Conversion (Cost/Conv) of each ad. If this information is not displayed, then the Google Tracking code is not installed in the ad's landing page.

For instructions on how to install this code, read Cost Per Conversion Don't Appear in AdWords?.

Which is More Important, CTR or Cost Per Conversion?

The click through rate (CTR) is the percentage of the time that an ad is clicked on when it is displayed. The cost per conversion is the amount spent for each customer that either buys something on a site, or enters their contact information.

Look at the two ads. Whichever one has the higher CTR is the better performing ad. Keep that one, delete the other one, and write a new one to compete with the previous winner. That's it....almost.

Some people base their decision solely on the respective CTRs of the ads. An experienced advertiser will also look at the cost per conversion, since this shows how much money is spent for each sale the ad generates.

Deciding which metric to use must be handled on a case by case basis. An especially low cost per conversion can also compensate for a certain degree of inferiority in the CTR department. Luckily, no decision is final.

There is another method of split testing that involves running tests with multiple copies of a campaign's top performing ad along with a new ad to neutralize the advantage an existing ad has by way of its performance history and produce more objective results. To learn how to run this kind of split test, read Don't Split Test Only Two AdWords Ads at a Time.

There are many online resources that delve deeper into some of the more intricate aspects of slit-testing. These resources help fine tune an ad campaign and an experienced advertiser would do well to utilize them.

Improve CTRs and Lower CPCs in Minutes a Day by Split-Testing Ads

Effective split-testing requires one major setting change on the AdWords software. When a campaign contains more than one ad, AdWords will, by default, give preference to the ad with the higher CTR by showing it more often.

This setting will result in skewed results. To change this setting so the software shows each ad an equal number of times, follow the following steps.

Split-testing ads on AdWords requires only a few minutes a day and the benefits can be incredible. A higher CTR and a lower cost per conversion will bolster a business' bottom line and eventually allow the business to run on autopilot.

Sources

Split-Test AdWords Ads in 2 Minutes or Less. 22 Oct 2009. http://www.netbusinessblog.com/split-test-your-adwords-ads-in-2-minutes-or-less/

Perry Marshall and Brian Todd. Ultimate Guide to Google AdWords. Canada: Entrepreneur Media, Inc., 2007.

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