Posted by James Lee on 21st November 2009

Examining Ad Copy Testing Myths

Varazo is a SEM Integration Company that integrates lead quality and our own source tracking system with PPC management to apply lead quality information as conversion score and optimize keyword bidding for campaign optimization. We do this using our two own developed Lead Management & Analytics and PPC Management software; ConversionSweeper and ClickSweeper.

Within the complex world of pay per click management, everyone seems to agree that there are two basic strategies for improving performance: managing keyword inventory and bidding, and testing ad copy performance. It’s easy to find strategy tips, software, and consultants to improve your keyword inventory and bidding approaches. But while many people invest heavily in these areas, the same people utterly neglect their ad copies.

It isn’t your fault. Until very recently, pay per click industry professionals and leaders have failed to develop any serious tools or methodology for improving text ad copies.

Instead of solutions, there are myths:

• Myth #1: if you develop multiple ad copies, you’ll eventually hit on the most profitable one.
• Myth #2: the search engine will test and pick the most profitable ad copy for you, your conversions will skyrocket, and you’ll live happily ever after.

Wrong. And wrong again.

Testing more than three ad copies at a time is actually counterproductive. It makes it harder and more time consuming to evaluate your ads. In the meantime, you waste both money and time. Ideally, you should test two – certainly no more than three – ad copies at a time so that enough data can be collected to evaluate performance over a reasonable amount of time.

As for the ad evaluation feature provided by search engine vendors, it compares and distributes ad copies primarily based on clickthrough rates. As you probably know, a high clickthrough rate means higher costs for you, not necessarily more conversions. For the vendors, of course, an ad copy with high clickthrough rates (regardless of its actual returns) generates more revenue — for them. They cannot afford to jeopardize their profitability by suspending higher-spending ad copy. So what can a savvy advertiser with an eye on the bottom line do? A successful ad copy is one that brings the most profit from the available opportunity. To evaluate ad copies properly, you need to sum up all opportunity, estimate clicks, and then estimate conversion and acquisition rates based on current performance.

Even if you’re a math whiz, this calculation is a little too messy and prone to error to be done manually for each of your ad copies in each of your ad groups. And unfortunately, very few pay per click marketing companies offer ad copy tools that will help you determine which of your ad copies is more profitable. But if you’re shopping around for PPC management software, one that has an ad copy evaluation tool is ahead of the curve. In this tough economy, it could just give your PPC ads the edge they need.

For More Information

No comments yet!

Post your comments