Which matters most---CTR or CPC?

A few mathematical twister from my adgroups . Numbers scare me a lot..!!!

I have a couple of ad palettes running in one of my adgroups. One of the ads has a CTR of 4.43% while the other has 2.98%. While the first ad generates a lower number of leads, the 2nd one generates higher. Their conversion rates are 1.6% and 2.2% respectively.

Both of my ads costing almost the same to me, I would want to continue running the second palette, because of its higher ROI.

Am I proceeding the right way? I know a higher CTR will give me a lower CPC but that too only to a certain extent….but what after that? Any comments from experts?

 

I think it depends on the product and the price of it.

Eddie

 

Was expecting a more elaborative reply to this tricky situation of mine...

 

yes you are on right the right move........
At starting, for some time you have to go on this track until your a/c is not settled well.
After that, when your ad copies started running well, keep on testing with them.
Make few changes and see the results.
if not succeed than again come back and try after some time...........
In between keep your eyes on the CTR & CPC of your ad copies which you are testing.
As I experienced,
"Testing,Testing &Testing",
this is the only step that last remains after set up the a/c.

Hope this helps you.........

 

ROI, CPC and CTR are just different measurements that give you an indication of what's happening to your only real Key Performance Indicator - Profit.

Your decisions should all be based on what generates the most profit.

In your case, suppose that you get 10,000 impressions.

Advert 1 will generate 443 clicks, and 7.1 conversions.
Advert 2 will generate 298 clicks, and 6.6 conversions.

To get the answer, the first thing you need to know is the cost per click. For the purposes of this example, I'll say £0.20

Your 7.1 conversions from advert 1 cost £88.60
Your 6.6 conversions from advert 2 cost £59.60

So advert 1 is more profitable if the additional 0.5 conversions are worth more than the £29 that they cost.

Put another way, if a conversion is worth more to you than £58, then advert 1 is better. Otherwise, advert 2 is better.

This is based on the £0.20 per click that I used - you'll need to add your own cpc in.

Finally, make sure if you're doing this kind of calculation that you've got enough conversions for the conversion rate to be fairly accurate. I'd recommend at least 15 conversions on each advert - ideally more.

 

Thanks a ton mate...This was exactly what i was looking for.!!!