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Understanding how relevance affects PPC




MarketingExperiments.com has just published a new research brief that discusses how the relevance of the ad displayed impacts the click through rate and conversion rate.

In two case studies, Marketing Experiments showed important the ad text is to both the click through rate and conversion rate. In one study that tested ads for Encyclopedia Brittannica, ad titles that contained both “Encylopedia” and “Brittannica” converted 2.5 times better than ad titles that contained only “Brittannica. ” It is important to understand that 90% of the tested traffic saw the ads after searching for a phrase that contained both terms.

This study quantified something that any sophisticated PPC advertiser probably already knows–you should try to match your ad titles as closely as possible to the search terms that you are buying. Be as specific as you can, using brand names if possible.

The second study involved an online newspaper and compared relevance between directly related keywords such as “online newspaper” to indirectly related keywords such as “Iraq.” Using indirectly related keywords generated traffic but with a much lower click through rate and conversion rate.

Of course, this study highlights something else that is very important. Traffic is not the key metric of most websites–but profitable traffic is. Only when monitoring the customer acqusition costs and customer values can you decide whether any keyword bidding (directly or indirectly related) makes sense. it is my guess that there are few industries where you can profitably bid on indirectly related keywords.

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  • http://www.corporatesearchoptimization.com Nhu-Chi

    When possible, you should always try to set up a conversion page for your webpage. Google offers this feature to go with the adwords account. It’s a great way to measure customer value. We (www.corporatesearchoptimization.com) set up conversion pages for all our clients.

  • http://www.wpromote.com/blog Mike Mothner

    This is a great piece of information. The relevance of your ad is hugely important for running a successful PPC campaign because it does in fact have a direct impact on both the click-thru and conversion rate. The importance of ad text is often overlooked but superior ad text not only attracts more clicks, but it also brings more targeted traffic to your site. Targeted traffic is the key to achieving the lowest possible overall cost per conversion for your business.

  • http://www.textadsearch.com/ TextAdSearch

    I heard something similar from an Adwords user, they were adding the search term into the PPC ad to increase clicks.

  • http://horisly.blogspot.com horisly

    absoluty, the ads relevance play great role on ppc payment.

  • http://www.webmaster-money.org Webmaster Money

    I am also putting higher bids on more related keywords.

  • http://victor363.blogspot.com Victor363

    What you just said in this blog post is probably the most under used, under valued, and under estimated strategy in e-commerce.

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  • http://www.AffordableWebHostingSites.com srikanth

    This is Correct in my experience.The ad Copy(mainly in first line) which contains Search Keyword gets High click through Rate and Conversion.