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Google Adwords/website hits “good statistics”?

My company uses Google Adwords to advertise our website. Our statistic for percentage of users who see our ad who actually click on our website is 0.29%, which seems pretty bad to us, but is it? What is a “good number of hits” from these sorts of things?

0.29% does sound very low, however CTR (Click Through Rate) is not the be all and end all.

For example take the example of 100 clicks:

Ad 1 – 80% CTR – 5% conversion = 4 sales
Ad 2 – 20% CTR – 90% conversion = 18 sales

So you can see that its conversion factor that is most important, rather than CTR. The conversion is how many people actually buy after clicking on your ad.

For example if 4 people out of 80 people who click your ad buy then thats a 5% conversion.

So you need to base how well your ad performs on the number of sales it gets you.

What would be better for you is to do split testing. This is where you create a number of different ad’s for the same ad groups. At the start, google shows an ad from the group randomly, and measures its performance. Over time, the most clicked ad’s are shown more. You can then delete lower performing ad’s.

Doing split testing should be a constant process, you keep trying new ad’s and weeding out the ones that don’t work. After a short while only your best performing ad’s are left.

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