WebsiteGear Logo Log In
New User? Sign Up
About | Contact | FAQ
  Home Content Website Promotion Advertising Thursday, February 23, 2017 
Print| Email| Save| Discuss| Feeds


Optimizing Paid Search Advertising
Author: Kevin Gold
Published: Tuesday, November 09, 2004


Is Your Paid Search Advertising Generating Positive Financial Results?

As an online business, you may be familiar with or currently utilize "pay for performance" search engines to send visitor traffic to your website. Also known as pay-per-click, PPC or paid search, it has literally taken the online marketing world by storm especially the two largest players, Overture and Google Adwords.

A 2004 "New Methods in Search Marketing" study by Piper Jaffray stated that "paid search constitutes more than 87% of U.S. search market revenues." This staggering statistic begs the question, "Are advertisers achieving a positive return on their paid search investment?" In other words, are sales being generated or is money just being spent?

The answer to this question may stem from understanding the role of the two critical performance metrics generated by all paid search campaigns (1) click-through rate and (2) website conversion.

The click-through rate is defined as the percentage of times a paid search ad is clicked on out of the total number of paid search ad views within a given period of time.

Click-through Rate (a.k.a. CTR) = Click-throughs (i.e. Total Visitors) / Impressions


For example, if your paid search ad is seen by 10 users and one user clicks on your ad, the click-through rate is 10 percent.

Website conversion is defined as the percentage of users who visit your website and complete your primary objective (i.e. purchased a product) out of the total number of users who visit your website in a given period of time.

Website Conversion (a.k.a. sales conversion) = Sales / Click-throughs (i.e. Total Visitors)


So what role does each play in understanding the effectiveness of a paid search campaign?

Standard practice among advertisers is to concentrate on writing ads that achieve a high click-through rate to send more visitor traffic to their website. Unfortunately this general assumption, "more traffic equals greater positive results", is flawed.

Consider this. Which click-through rate is better?
  • A 20% click-through rate for a paid search ad that achieves zero sales (0% website conversion).

OR
  • A 0.2% click-through rate for a paid search ad that achieves 10 sales (10% website conversion).

The answer is obvious. The click-through rate, especially for newly setup PPC campaigns, is relative - it is the website conversion rate resulting from visitors clicking through a particular paid search ad that defines success or failure.
Optimizing Paid Search Advertising Contd. Next Article
Print| Email| Save| Discuss| Feeds
RELATED ARTICLES
Nav Targeting Usage Demographics to Increase Paid Search Conversions
By understanding usage demographics for the search engines, a web marketer can develop a relevant message and target an ad placement that most effectively connects and converts.
Nav How to Maximize Paid Search Results
Try these proven strategies for pay-per-click marketing to produce your desired results.
Nav Website Conversion Metrics Explained
Performance metrics are measurable results gathered and calculated from your business’ online systems and used to identify their aggregate and individual strengths, weaknesses and opportunities.
Nav About Website Conversion Rate
A conversion rate is a measurement of the percentage of visitors who complete a desired action. Learn more about conversion.
Nav BURST! Media Review
BURST! Media is one of the premier advertising networks in the industry for speciality content web publishers. This article provides a review of the network.
RELATED NEWS
News Post Advances in comScore's vCE Campaign Measurement Service Aim to Increase Transparency and Accountability in Digital Advertising
Sophisticated Ad Fraud Prevention, Expanded Reporting, and 3rd Party Accreditations Foster Increased Trust Between Advertisers, Agencies and Publishers
News Post Signator launches recruiting ad campaign
Ads detail the independent broker-dealer's resources to help advisors
News Post OUTFRONT Media Partners with RIPE Bar Juice to Develop #NationalMargaritaDay Campaign
OUTFRONT Studios Helps Advertisers Join Social Conversations and Drive Buzz around "National Days"
News Post Advertising Industry to Gather in Los Angeles for 4A's Transformation Conference and to Celebrate Association's 100th Anniversary
Leading Executives Will Tackle Key Industry Issues and Discuss What's in Store for the Next 100 Years
News Post GlassView and SPM Team Up to Deliver Healthcare Videos Via Wearables and the Internet of Things
Social Video Campaign on IoT-Enabled Devices and Wearables Delivers Strong Results for Rush University Medical Center and Others
Submit News | View More NewsView more news
RELATED CLASSIFIED ADS
Classified Ad Top advertising agencies in India
Aquarius Promotions Pvt. Ltd. is one of the most rapidly growing advertising agency in India. With a ...
Classified Ad Automated Web Advertising For Your Biz/Products
Hello, Ad Post Pro offers automated video campaigns, advertising for your business/product, automate ...
Classified Ad Creative Branding Agency In Bhopal
Aquarius Promotions is a top advertising agency, creative branding agency, and PR Company. Aquarius ...
Classified Ad SEO & Social Media training in Mumbai
PRJankari Digital Marketing Pvt Ltd (PRJankari) is a SINE IITBombay incubated social media company. ...
Classified Ad Are you the only one left feeling SEO stress?
Hiring a white label company is seamless—your end users can’t tell the difference between your w ...
Post Free Ad | View More View more classifieds
RELATED FORUM POSTS
Forum Post Using click tracking for tracking advertiser links
You can use click tracking for recording clicks to your advertiser's websites. With the Plat ...
Forum Post How to setup link tracking?
Here are the simple steps to create a link and test the tracking feature. Setting up links in you ...
Forum Post Most effective ways to get traffic to your site
Hi everyone! Traffic, Traffic, Traffic! How do we get it? There are lots of possible ways to ...
Forum Post Is It Possible To Get Best Results With Free Ads?
Hi, Here your friend Matunda Pero. Please, I would like to know if advertising my website with free ...
Forum Post How To Promote My Site Free?
Hi fellow affiliate marketers, I would like you help me to promote my website using free advertis ...
Add New Post | View More View more forum posts
POPULAR ARTICLES
Nav How To Sell A Website
Nav Subdomain Configuration - How To Setup A Sub Domain
Nav Domain Configuration - How To Setup A Domain Name
Nav Website Layout - Tips & Tricks
Nav Round Robin DNS Load Balancing
Nav Introduction To Server Load Balancing
Nav Website Traffic & Revenue
Nav Tips On Using SubDomain
FEATURED NEWS | POPULAR NEWS
View More News View More News