I discovered a really cool site today that all you pay-per-clickers are sure to appreciate. It’s a free tool which analyzes your ad data and tells you which one makes you more money!
Sound straightforward, kinda like a no-brainer which you think you already know how to do? Might want to think again. The premise behind this is that most marketers create ad variations, split test, and then the one with the strongest click through rate (CTR) carries on to round 2. That’s a good guesstimate of performance, but at the end of the day, we don’t really care how many people clicked our ad, do we? We care about how many people performed the required action! So we really need to take conversions into consideration too.
So how do you do the math to get a useful result out of all the numbers? Glenn Livingston from Super Split Tester has created a cool tool to do it all for us. Simply enter in your numbers and it will tell you, along with a confidence interval, which ad actually adds more to your bottom line. Confused about the vocabulary? Check out Mathblog reference for some more resources. You might be surprised, the ad with the lower CTR might actually produce more sales per thousand impressions than your previous star performer!
Here’s Glenn’s video explaining the tool.