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Wednesday, March 23, 2005

Increase Adwords CTR (or Not)

I just read an article about how to increase Adwords click through rates. That article did not once mention the idea of increasing the conversion rate of that same traffic within the campaign.

Most think that if you increase the CTR for a Google Adword Campaign, you will automatically make more sales.

This is simply not true.

An increase in Adword CTR does not mean that you will make more money or sales. In fact, you don't want a high CTR until after you have validated the conversion rate of the landing pages and the sales pages. With this, you need to know that if X customers see the landing page X will come through and X will convert to sales.

Too many times, online marketers are working under an ineffective set of assumptions.

The Number #1 wrong assumption is: If I have more traffic, I will make more sales.

The Number #2 wrong assumption is: High CTR from Google Adwords is a good thing.

The Number #3: All traffic is the same. (Traffic is very different as it relates to buyers and tire-kickers and you need to know the differences.)

Ideally, you want high volume targeted traffic, lowest profitable CTR and high conversions to sales.

Low CTR means that you am spending less money. High conversions means that you are creating revenue.

The difference between those two numbers is profit.

So the key is to drive Adword advertising costs down while at the same time increasing the revenue from that same Adword generated traffic.

Take Care,

David Bullock
results-squared.com

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