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bluhand
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Posted: 2005-Sep-02 22:21
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I have the following CTR on my Ad Groups:
3.3%
1.4%
.9%
.8%
.7%
.6%
.6%
These seem awfully low to me, but I know these types of campaigns don't usually return a high percentage -- so am I right and these are OK? Or am I a Big, Fat Loser?



bhartzer
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Posted: 2005-Sep-02 23:13
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It really depends--what's good for one site might not be good for another.

I wouldn't worry too much about the actual CTR (click-through ratio). I would concentrate on the ROI you're seeing from sales.

If you sell a product and you make $1000 for one sale then a CTR of 1 percent might be just fine if you're paying only $.10 cents a click and one in 10 clicks results in a sale. But, if you make $10 a sale and pay $.10 cents a click and have a click-thru ration of 10 percent and one in 100 clicks results in a sale then that would be different.

I wouldn't worry much about the CTR--I would worry more about your ROI.

So anyway, to answer your question, I've seen plenty of people get anywhere from 10 percent to 25 percent CTR on their Adwords ads--especially because those ads are highly targeted.



flyingrose
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Posted: 2005-Sep-05 05:29
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I want to second Bill's emphasis on ROI. Advertisers who wish to be successful must know how much it costs them to generate a sale and ensure that they are making more than enough in sales to cover advertising costs.

That said, the average I've seen for both direct mail and online ads is 1-2% so when you're just starting out use 2% to set an estimate of advertising costs to ensure you don't overspend.

For example, if you're bidding $0.10 and have a 2% conversion rate you'll see two sales for every 100 clicks.

$0.10 times 100 = $10 so you must have more than $10 profit in every 1-2 sales to break even.

It IS very possible to have much better conversion rates AND it is possible to have lower conversion rates for large ticket items with large profit margins. The main thing is to KNOW what it costs you to generate a sale.

Be especially cautious when advertising any item that has a markup lower than $10.

Make sure you're staying in the black and then you can focus on improving your CTRs with better and more targeted keywords and ads.

P.S. High CTRs are generally seen for exact matched niche keywords rather than broad matched or general keywords.



evicart
Joined: Jan 13, 2005
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Posted: 2005-Oct-18 15:01
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I completely understand that ROI is the really the most important thing to analyze, and I understand the metrics of my business. BUT I still have a question about CTR----

Have you ever noticed a decrease in CTR because there were too many ads running? Here is what happened to me, I had 3 ads running in one ad group and the CTR was ok, not great but ok, sales were generally ok as well. Recently 3 more ads were put into this adgroup in an attempt to attract more traffic and the CTR went from .7% to a .2%! I deleted three of the ads that were not performing well and now the CTR has rebounded back to a .6% and it is still early enough in the day for this to improve as well.

Any thoughts?



flyingrose
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Posted: 2005-Oct-18 21:01
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There are two potential reasons that having more ads lowered your CTR. The most obvious one is that the additional ads were just not effective.

Before you delete ads you can compare the CTRs and see if some are pulling your CTRs down. Since you said you deleted three of the ads that were not performing well, it is probable that those ads caused the drop.

Less likely but something I've seen in print ads is that repeat searchers may click on those that are familiar so displaying the same ads over and over might raise CTRs.

The first reason is more likely. If you want to attract more traffic try testing ads this way:

Take the ad with the best CTR and use the text of that ad with many different Titles. Let them run for a while, keep the best CTR ads and delete the others.

Once you get the Title that pulls the best, take that Title and try different text wording with it. Test those, keep the best, and delete any with poor performance.

To make improvements you have to take some risks. It pays off in the long run even if it causes drops in the short run.



evicart
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Posted: 2005-Oct-18 21:38
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Thanks flyingrose!

You have confirmed my suspicion! I ended the day with a CTR of 1.1% now I have to check to see if we actually made some sales.

You mention doing a test to match the right title are talking about taking advantage of keyword insertion in order to determine that?



flyingrose
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Posted: 2005-Oct-18 21:47
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Titles that include the keywords are generally going to have the highest CTRs and you can try different phrases in your ads even if you use keyword insertion.

It is generally easier to apply on static titles rather than those generated by keyword insertion. The shorter your keyword the more room you have to test different wording.

The same words perform differently for different products, so test different adjectives to describe your product or use different questions or calls to action.

Some Title examples might be:

Which Widget Really Works?
Save 10% Off Widgets Today
Fast, Easy Widget Service
Simple, Effective Widgets
Reliable Widget Services
Are Your Overspending on Widgets?

You get the idea. Same subject, different catch phrases to get the attention of your searcher. A good book on copywriting can give you ideas about what words, questions, feelings, etc. pull best.

One of the basic concepts is sell BENEFITS, not features. And make ads about the SEARCHER and "what's in it for them", not about your company or describing your product or service.

Searchers are looking for a solution to their "problem" and will respond best to ads they believe offer that solution.


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