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:
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 =)