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What is a good campaign?

ctr impressions

         

johnharvard

6:36 pm on Dec 4, 2009 (gmt 0)

10+ Year Member



I am running an adwords ad campaign and I'm having a little trouble determining if what I'm doing is working or not. My CTR this month is %2.59. That seems low to me. Is that good, bad or just average?

Also, when people do click, I'm averaging about 4% of those clicks turning into actual sales. So on average out of 100 clicks, 4 of them become a sale. Again, that seems pretty low but maybe I'm being unrealistic.

So what should I expect? Any stats on what's a good ctr and click/sale ration?
Thanks,
John

smallcompany

6:53 pm on Dec 4, 2009 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



Are you making money at the moment?

johnharvard

9:07 pm on Dec 4, 2009 (gmt 0)

10+ Year Member



Yes, revenue is staying ahead of expenses. By that yardstick, I guess you could call it a success.
Anyone in the business of marketing web businesses have any input on what their goals are for ctr and click/sales ratios?
Thanks

netmeg

9:18 pm on Dec 4, 2009 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



Click/sales, CTR - that stuff doesn't have a lot of meaning for me. Conversions and ROI is how I measure.

smallcompany

9:25 pm on Dec 4, 2009 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



CTR depends on (no special order):

- keywords - general, product name, TM
- ad text - how much the keyword is matched, special offers
- display URL - having keyword in URL helps a lot in AdWords
- ad position - top premium area (1,2,3), side, bottom, which page, etc
- competition - number of ads around, what those ads are about
- QS - this one I can't really figure out, but the better QS, I get better CTR even though the ad position is same all the time. I take it like that AdWords favors my ad and therefore pushes it nicely at lower price (however it does it - I repeat - ad position never changes)

Conversion:

- total conversion of 4% is good for many, not sure how it stands for specific targeted campaigns like on AdWords - very relative to each separate campaign and depends on all what happens on the Google's and other pages where your ads is being shown

Don't burden yourself with "static" questions like what's good CTR?
What you'll do if I tell you I had CTR as high as 75%?
Or that my average on campaign getting over 50k impressions a day is over 7-9%?

But the above does not apply to you in any meaning, unless you use same keywords as I do.

So... you're making profit... now see what you can do to optimize your campaigns which consists of:

- bettering your QS which will reduce the price per click, increase CTR, probably help increase sales
- testing different ad text variations
- checking your ad groups and making more with fever keywords so your ads are better focused
- checking what your competitors offer and see if you can be better then them - be valuable to your customers

Added:

Click/sales, CTR - that stuff doesn't have a lot of meaning for me. Conversions and ROI is how I measure.

Exactly! Do your own stuff...

johnharvard

9:29 pm on Dec 4, 2009 (gmt 0)

10+ Year Member



So maybe a better, less specific, question is what are the metrics you use to measure how well you're doing? What level of conversions, roi or whatever else tells you that you're succeeding or failing?

smallcompany

9:38 pm on Dec 4, 2009 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



Bing something like "what's good conversion"

LucidSW

3:16 pm on Dec 5, 2009 (gmt 0)

10+ Year Member



smallcompany said:
QS - this one I can't really figure out, but the better QS, I get better CTR even though the ad position is same all the time. I take it like that AdWords favors my ad and therefore pushes it nicely at lower price (however it does it - I repeat - ad position never changes)

Seems like you have figure it out. Your CTR improved giving you better QS which reduced your costs. I would also have expected a better position but don't forget there are other factors, mainly your competitors.

As for "average" CTR and conversion rates, all kinds of things are going to affect them. I would try to increase CTR as much as possible but sometimes a 3% rate could be considered good, other times not so good. Same for conversion rate, in some cases I would be happy with a 4% rate. ROI is the number you should look at.

smallcompany

6:07 pm on Dec 5, 2009 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



smallcompany said:
QS - this one I can't really figure out, but the better QS, I get better CTR even though the ad position is same all the time. I take it like that AdWords favors my ad and therefore pushes it nicely at lower price (however it does it - I repeat - ad position never changes)

Can't figure out why position 2 with QS 7, and position 2 with QS 10 differ so much. ...and in either case, it's always in premium area...
Plus, search partners are OFF in this case...

spotswood

11:17 am on Dec 8, 2009 (gmt 0)

10+ Year Member



Wouldnt the thinking be the other way around? The CTR has taken you to higher QS not higher QS to higher CTR. You are getting a higher CTR relative to your competitors in those examples than where you are QS7, therefore you get QS10 however not high enough ad rank to promote to the next position.

LucidSW

1:27 am on Dec 9, 2009 (gmt 0)

10+ Year Member



> Can't figure out why position 2 with QS 7, and position 2 with QS 10 differ so much.

Differ in what way? The price? For the same keyword and ad?

QS by the way is calculated only for the Google network. The search partners data is not used in the QS calculation.

pavlovapete

2:39 am on Dec 9, 2009 (gmt 0)

10+ Year Member



but the better QS, I get better CTR even though the ad position is same all the time

what is your impression share?
is your ad shown more times with a higher QS? Does a higher QS allow you to participate in more auctions?

I like looking at what/how ads are rotated on the same query when clicking through to page 2, 3, 4, 5, etc - I've seen the premium slots rotated with the first 2 right slots fairly consistently and then the remaining 6 right slots distributed evenly between 10 advertisers for example.

Put another way I've seen the 6 top advertisers rotated in the top 4 slots and then another 10 advertisers rotated on the 6 lower slots.

(I am aware that this is not a scientific test)

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