PPC Text Ad Split Test Optimization

November 16, 2008

In the setup phase I explained the importance of A/B split testing now I will explain what to do with it...

The fundamentals of a high quality PPC campaign consists of a couple basic factors:

  1. Min of two active text ads/banners per adgroup running at all times. Once one is proven to be much more effective than the others you must rewrite the less effective ad.
  2. Tracking conversions/leads/sales/goals.
  3. Collecting a min statistical sample of 4 conversions per ad in order to evaluate the true Cost Per Acquisition of a particular ad.
  4. Rewrite the the ad with the higher CPA. Once you rewrite a ad it looses its statistical history.
  5. Repeat.

Many PPC advertisers measure their ads success according to Click Threw Rates (CTR). This is WRONG. While high CTR performing ads usually deliver a high CPA the lower CTR ads are those deleviring profitable stats. The correct way to measure the success of ads is by their CPA. Bellow is an example of a triple split test with real stats from a campaign we are running for one of our clients (stats real, fake ads)

Notice! the first ad achieved a higher CTR had a lower Avg CPC since its quality score was better due to its high CTR, BUT its conversion rate was much lower than the second ad that achieved a much lower CTR and as a result had a much higher Avg CPC; Yet it still got the lower CPA!

The bottom line is CPA! YOU must understand track & calculate it at all times.

Good Luck =)

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