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What Pay Per Click Advertising Isn’t About

June 27, 2007 by Brendon Sinclair Leave a Comment

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.

Cheers
brendon-signature

Filed Under: Blog

About Brendon Sinclair

Brendon is the Founder and CEO of Tailored Media. He is one of those rare creatures who can not only tell you how to do it, he’s done it himself, with a vast array of experience across a broad range of areas from marketing public companies, national brands, large retail operations and much more.

He can be found on Twitter, Google+ and Facebook.

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