snoopy1122 - 3:02 pm on Sep 9, 2011 (gmt 0)
> I've tested their ads
You should never do this. You should be different. Besides, doesn't mean you'd get the same results. Why would I click on one ad or another if they are both the same?
Why not? Is it not the norm in business to copy a competitors marketing methods?
If two ads contain the same text I'd imagine the ad most likely to be clicked on is the more prominant ad.
> the domain name is an exact match for the keyword
It results in higher CTR's and hence lower costs.
> Are you sure quality score gets calculated on the a per ad basis?
Positive. Remember I said the ad-keyword, not just the ad. Yes, QS is shown at keyword level. But think about it logically. Which has the most influence, the keyword or the ad? You can test this out.
I know it is would be logical to base it on the ad, but do Google actually do that? Have they said it anywhere?
the ad with the lower CTR is the better performer
It can happen but in your case, no. I also don't understand your logic and calculation.
The ad with the lower CTR has a higher conversion rate (because it mentions the price, approx 70% better convesions). So revenue is much the same with both ads, but the lower CPC ad produces that similar revenue at a lower cost. (have posted some more data below)
The CTRs have a difference of almost twice the rate. Unless the lower CTR ad has a conversion rate of twice that the first, then they are similar ROI-wise. But you say they are identical. Therefore, you win twice with the higher CTR ad. It gets a higher QS which keeps costs down and competitors at bay. You also get more sales per visitor and therefore more revenues and profits.
Yes, the conversion rate difference is much the same as the CTR difference,
Here is the ctr and conversion rates currently
CTR - Conversion Rate - CPC
Ad 1. 14.72% - 8.43% - 30 cents
Ad 2. 24.34% - 4.79% - 28 cents
So the cost per conversion on the lower CTR ad is $3.55 and $5.74 on the higher CTR ad. Hence the lower CTR revenue produces a higher ROI.
You can post links here at WebmasterWorld but add a dot com to Lucid Web Marketing and check out my free ebook which goes into more details on how QS is calculated. It's basically a standard deviation calculation.
Thanks, will check it out.