What Pay Per Click Advertising Isn’t About

I’ve just sent through a client a quick report on the impact of us managing his Google AdWords campaign. It’s only been a couple of weeks so the data set isn’t great, but it’s good enough.

1. We’ve increased the Click Through Rate by 300%.
2. We’ve decreased the average cost per click from $1.62 to 48 cents.

Now looking at those 2 key indicators you’d think they are very important.

They are, kind of.

Most Important Part of Pay Per Click Advertising

But by far the most important part of Pay Per Click advertising is the conversion rate of the visitor.

Does the visitor coming from the $1.62 click convert better than the visitor coming from the 48 cents click?

And if yes, is the increased click cost more than compensated by the profit generated?

That’s the important stuff.

(With our client the answer is no – we’re getting a much better conversion rate from the lower click cost. It’s because the keywords we’re bidding on are far more targeted to our target audience and far more likely to convert into a sale.)

Measure Everything

Measure everything, but know what the most important measurements are.