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Dynamic keyword insertion - High CTR, but low conversion?

Using dynamic keyword insertion but getting low conversion rates. Help!

9:31 am on Jan 10, 2010 (gmt 0)

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I'm a forum newbie and would appreciate your help.

I started to use Dynamic keyword insertion a few months back on 3-4 of my Google Adwords Ad groups (selling software) and was excited by the results I started receiving.

Here's a typical example:

** Original Static Ad:
Click Thru Rate: 1.30%
Landing page Conversion rate: 2.27%

** New Dynamic keyword insertion (DKI) Ad:
Click Thru Rate: 3.25%
Landing page Conversion rate: 1.19%

So, my CTR for the Dynamic keyword Insertion Ad was 2.5 times better - fantastic!

But why has my conversion rate nearly halfed?

Is it because people are expecting to see the exact keywords they have searched on at the top of my landing pages and the DKI ads don't deliver this?

Do other people experience this?
Should I keep the DKI ads going or pause?

Any thoughts / help would be much appreciated.

Many thanks.

4:05 pm on Jan 10, 2010 (gmt 0)

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First, I would stick with the second ad since you are making almost one more sale per 10,000 impressions than the first. But that's just me.

Second, this is really not a fair test in my opinion but maybe I don't have all the facts. Did you run both ads at the same time? Assuming there is enough data to make those percentages statistically significant and they were not run simultaneously, what makes you think that the conversion rate would not have gone down with the first ad too?

Next, look at your keywords. Would inserting them make the ad more attractive and make sense? From the CTR difference, I guess they do. I also assume that you used it in the title only and that your description lines and display URL were the same in both ads.

A tip to keep in mind about the DKI if you don't already know:

{keyword:The quick brown fox} inserts keyword in lower case and will show as "the quick brown fox"

{Keyword:The quick brown fox} inserts with first word capitalized (first letter that is) so will show as "The quick brown fox"

{KeyWord:The quick brown fox} inserts with first letters of all words capitalized and show as "The Quick Brown Fox"

So be careful how you use DKI. It might actually reduce your click rate if you don't use the directive properly and take your keyword logic and word order as well as the rest of the ad into account.

10:22 pm on Jan 10, 2010 (gmt 0)

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Hey LucidSW - appreciate your thoughts.

Your suggestion re running the 2nd ad makes total sense (I hadn't done the ROI calculation in that way yet - duh!).

In answer to your question, both ads were up and rotated at the same time. Both ads received about 3000 impressions over the testing period (quite a niche area).

I think the keyword insertions (in the title) were fine and the ad made sense. Just surprised to see how much lower my landing pge conversions were.

Any more thoughts / brainwaves appreciated.


7:22 pm on Jan 11, 2010 (gmt 0)

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I'm assuming both ads were the same - same description lines, same display URL - only the title was different.

Sometimes, things like that just happen without any real explanation. Don't think about it too long or you'll go crazy. Just accept it.

Try different variations of ads.

3:53 pm on Jan 12, 2010 (gmt 0)

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Welcome to WebmasterWorld, IceCreamMan!

Your static ad - which features only one flavor of the theme of your ad group - probably performs better for the keywords that are directly related to it, but it's under performance across the entire group indicates that your ad group may not be as tightly related as you may have thought. Dynamic keyword insertion can be a powerful device for making your ad copy immediately more relevant (or seemingly so) across a wide variety of keywords, hence the higher CTR. But, unless your conversion funnel reflects these same nuances, then you're likely going to see an increased rate of drop-off. You struck on an interesting opportunity via your test - but, for next steps, I might suggest that you analyze the types of keywords/queries that are resulting in lower conversion rates and consider restructuring your ad groups and customizing their funnels uniquely.

Good luck!


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