Optimizing Paid Search Advertising
Is Your Paid Search Advertising Generating Positive Financial Results?
As an online business, the people may be familiar with the available utilize “pay for performance”. Also known as pay-per-click, PPC or paid search, it has faithful taken the online marketing world flood especially the two largest player, Overture and Google Adwords. A study by Piper Jaffray tell that paid search constitutes more than 87% of U.S. search market revenues. This wonderful statistic demand the question:”Are advertisers achieving a positive return on their paid search investment?”
The answer to this question may forbid from understanding the role of the two critical performance metrics.
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.Website conversion is defined of users who want to visit your website and complete your primary objective.
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 between advertisers is to concentrate a high click-through rate to send more visitor traffic to their website.
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