As we know, Google AdWords PPC management system allows an advertiser to run 2 or more ads per keyword simultaneously. Google rotates the ads in either even ratio or by the one that’s more popular (gets a higher click through rate).
Many marketers “think” that the winner is the ad that generates a higher CTR (click through rate) … and that’s where they are wrong.
Look … I can go and add a word “FREE” to my ad and sure enough it will generate a higher CTR. Will it generate a higher conversion rate though? Most likely not since those extra ‘clickers” you got were not interested in paying for what you were showing. It is also misleading.
So how do you really test AdWords ads and how do you choose the winners?
You have to look at 3 different measures when you test Google ads. They are Click Through Rate (CTR), Conversion Rate and Bounce Rate.
CTR will pretty much show you the popularity of the ad. How good it attracts the eye as well as the click.
Conversion rate will tell you if the ad is attracting the right people and if what you say can be taken to the bank.
Bounce rate is a great way to see if your ad is not misleading. If you see a significant bounce rate from an ad you’re running what it means is that those who click on it might be expecting something different. Watch these stats like a hawk.
I am sure there are more statistics that can be useful when testing AdWords ads (I use more than 3), but the above 3 are crucial and much better than picking your winners by simply looking at how many clicks they generate.