CTR or Conversion Rate? Which one to choose

Discussion in 'Google AdWords' started by gaman, Jul 10, 2007.

  1. #1
    During a split-testing process, I usually delete an ad with the worse performing CTR since the conversion rate usually isn't much better either.

    However, I've been wondering which ad to delete for this one. I've seen a fomular an advertiser used to determine which ad to delete but can't recall how.

    First ad
    % Served Clicks Impr. CTR Cost Conv. Rate Cost/Conv.

    12.3% 496 6,233 7.95% $149.70 1.2% $24.95

    Second ad

    21.5% 706 10,843 6.51% $232.60 1.7% $19.39

    Which one would you delete and why?
     
    gaman, Jul 10, 2007 IP
  2. GuyFromChicago

    GuyFromChicago Permanent Peon

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    #2
    You're getting a better cost per conversion with the second. Clear winner to me.
     
    GuyFromChicago, Jul 10, 2007 IP
  3. DN Webmaster

    DN Webmaster Guest

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    #3
    i saw u two plan is very good CTR!

    but if u only want keep one. i think u need think which ROI is better!

    thanks
     
    DN Webmaster, Jul 10, 2007 IP
  4. CustardMite

    CustardMite Peon

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    #4
    When testing adverts, you should run them over the same period, with equal distribution. Has the advert with 21% of the traffic been running for longer than the other, or is it just being shown more often? If it's been running for longer, then you should only look at the time when both adverts were running.

    In general, the top advert will generate 795 clicks from 10,000 impressions, with 9.6 conversions. The bottom advert will generate 651 clicks from 10,000 impressions, with 11.1 conversions.

    So which is more profitable - 9.6 conversions at $25 each or 11.1 conversions at $19 each?

    If a conversion is worth more than -$16 (profit excluding advert cost), then you want to go with the $19 conversions. If it isn't, you should really look at your business...
     
    CustardMite, Jul 11, 2007 IP