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	<title>Search Engine Marketing Technology&#187; Return On Ad Spend</title>
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		<title>Optimizing Return On Ad Spend</title>
		<link>http://www.semtek.net/blog/2009/06/optimizing-return-on-ad-spend/</link>
		<comments>http://www.semtek.net/blog/2009/06/optimizing-return-on-ad-spend/#comments</comments>
		<pubDate>Sun, 07 Jun 2009 05:16:12 +0000</pubDate>
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				<category><![CDATA[Pay Per Click]]></category>
		<category><![CDATA[Return On Ad Spend]]></category>

		<guid isPermaLink="false">http://www.semtek.net/blog/?p=159</guid>
		<description><![CDATA[When testing and refining your Google AdWords Pay Per Click (PPC) account it is important to take good care of your ad text as well as your bids on relevant keyword phrases and Click Through Rate (CTR).
Often Ad Text is overlooked as it would appear that your bid price and CTR are more important. This [...]]]></description>
			<content:encoded><![CDATA[<p>When testing and refining your Google AdWords Pay Per Click (PPC) account it is important to take good care of your ad text as well as your bids on relevant keyword phrases and Click Through Rate (CTR).</p>
<p>Often Ad Text is overlooked as it would appear that your bid price and CTR are more important. This is however not necessarily the case.</p>
<p>The wording used in your ad text must connect with your visitors and trigger a reaction to turn them into a potential client. This is extended further into the landing page (which website page the ad points to), however that is another story altogether.</p>
<p>It is easy to throw ad text relevancy to the side as CTR can take over. When running your ads side by side you may see that one ad is achieving a much higher click through rate than the other. CTR refers to the amount of clicks an ad receives divided by the number of impressions (or views) it has before someone clicks on it. So for example ad ad that receives 100 impressions and gets 10 clicks is achieving a CTR of 10%. Depending on the keyword phrase bid upon, this may be high or it may be low.</p>
<p>Another problem with focussing on CTR is that some PPC managers will focus on inflating CTR as much as possible due to the fact that they are being paid in percentage of ad spend. Therefore the more clicks they get, the more they get paid. While this may increase visitors to the site, it may not result in the most conversions. The same goes for advice from Google as they also wish to increase your ad spend due to the fact that Google gets 99% of their revenue stream from AdWords.</p>
<p>Optimising for Return On Investment (ROI) as well as CTR will result in the best performance of your campaigns. Targeting the correct keywords and using them strategically in your ad text will work to improve your Return On Investment, especially when combined with conversion tracking to be sure that visitors coming to your site are actually performing some sort of goal &#8211; be it visiting the contact us page, filling out a form, adding an item to their shopping cart and proceeding to your payment gateway, or visiting a specific series of pages in a row.</p>
<p>Therefore choosing an ad that results in the most conversions &amp; having a higher Return On Investment, and also looking at the ad that receives the highest click through rate &#8211; choosing this ad will ultimately give you the ultimate Return On Ad Spend (ROAS).</p>
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