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Click Through Rate Average

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AdSense isn't the unstoppable revenue engine for every ebusiness. Before I am taken out and flogged by the eCommerce pundits -- please let me explain what I mean in my defense.



I make revenues from AdSense at a very high click-through rate. I experience high click-through rates with AdSense without resorting to questionable tactics like tricking site users with photos (the AdSense trick and tip detour).

So my perspective is from one who has made decent income from AdSense to fund aspects of his business like advertising seminars -- and outsourcing to his virtual assistants. To know more go to www.adsense-income-exposed.com. Yes, AdSense is a legitimate and significant revenue source. However evaluate AdSense with some type of balance.

By now you may have heard about people like Joel Comm.?s six figure income with AdSense, or Jason Callahan's of Weblogs being on his way to generating 1 million dollars in AdSense revenue. Google's Ad revenue sharing affiliate program for publishers certainly seems to be an sales Nirvana for many webmasters.

But there are obvious and not so obvious times not to use AdSense ads on your sites. Let's list - examine - and explain them below.

1. On Sales or Mini-sites

this is a no-brainer. If you are trying to sell a particular product that is important to your bottom-line, you don't want AdSense ads distracting your customers from either joining your email list, or hindering your site's online sales process.

However I do see hybrid sites that are mini-sites or full scale eCommerce sites, with AdSense at the bottom of their pages. This might not be so bad since only 1% - 15% of your site visitors will either buy from you or fill out a form.

The thinking with this approach is you might as well make money from disinterested parties using up your server's bandwidth.

2. SEO Business Sites

If your livelihood depends on search engine optimization or marketing for a living you might want to think twice about displaying AdSense Ads on your site. I can tell you this from personal experience. I once was on top of MSN for search engine marketing in my local area. I concentrated on my local area because I found people felt more comfortable hiring an eCommerce consultant locally.

One day my site fails totally out of the MSN index. After intense study I noticed that I obviously had a filter on my site from MSN.

I analyzed all the top ranking sites in MSN and noticed the only difference between me and the other top ranking sites was I had Google AdSense ads on my site. Someone at MSN felt that my AdSense ads, and perhaps to a less extent, my book on SEO, was getting a free ride in the MSN search engine database.

In fact I noticed that there were no sites with AdSense ads for at least the first 3 pages. Plus the sites with AdSense were only using 1 ad unit at the bottom of the home page (there were very few of them in the top 5 pages).

I knew it was strange to not have AdSense ads on the top Internet marketing sites. This prompted me to scan other industries where I noticed the same trend.

Many of the leading SEO gurus have sites that have been banned from the top listings by the search engines. It seems the more visible you become, the more of a target your sites are to the search engine auditors.

Some of my sites are still on the top of MSN with AdSense ads but that doesn't mean they won't also be targets in the future.

Let's face the facts. MSN and Yahoo! have competing ad networks to Google's, and this competitive situation is rife for a potential backlash against SEO sites with AdSense ads.

Many Sees will point to exceptions to this position. However you have been warned!

Think about it, how long will MSN and Yahoo! sit back and watch SEO driven websites use their search indexes to fund Google? Did you know SEO in MSN and Yahoo(!) --- is much easier to obtain.

Therefore optimized sites are creating an ad sales wealth transfer from MSN and Yahoo into the pockets of Google! It won't be long before Yahoo! and MSN begin to devalue ranking on AdSense sites in their databases -- if not outright ban them.

If you are in the search engine business stay search engine neutral, or create multiple sites for different search engines.

3. When AdSense Becomes you're Only Business Model

When you become so myopic in your thinking that you build a business solely on AdSense revenue -- think again my friend. Why build a business solely on the largess of Google?

I don't know if your realize it or not, but the sites making the real big AdSense money usually have a following that doesn't depend on the search engines. Internet mavens like Chris Pirelli or Joel Comm. have been on the Internet a while and have followings for their websites. Therefore they can consistently make six figures with AdSense.

These content powerhouses are an asset to Google and not the other way around. But do you think Google is going to sit back and watch just anybody make big bucks off of their top rankings?

If you do a search on most keywords you will notice many of the top ranking sites are news sites, .go sites, or .org sites these days for more details you can login to www.guardadsense.com. The only exception is in industries where these sites don't really exist like eCommerce industries (clothing, shopping, etc.).

No doubt in most industries you will notice a conspicuous scarcity of AdSense sites in the top rankings. In other words don't bet your future fortunes on AdSense.

An IPO based on projections of AdSense revenue isn't in the future for the average ebusiness. Think of Google AdSense as supplemental income. Building a business solely on AdSense revenue isn't just silly -- it's just plain stupid.
Click Through Rate Average
Since the beginning of search engine marketing, search engines have been training their users to focus on achieving a higher click through rate (CTR). The search engines say that an ad with a higher CTR is more 'relevant' and more 'compelling' to searchers, thus it will 'perform' better. Read below to see exactly how the Top 3 search engines speak to this:

MSN: The relevance of your ads affects their performance. Making your ads highly relevant is an inexpensive way to improve their position and increase their CTR.

Yahoo: An ad's quality index is primarily determined by its CTR. To improve your quality index, focus on making your ads as compelling as possible, so that users will be more likely to click on them, giving you the best possible CTR.

Google: Over time, our system determines which ad is performing better based on higher historic CTRs and Quality Scores compared to other ads within the ad group. Based on this data, we'll show your higher performing ads more often.

The search engines are not saying anything wrong here, however, they define performance differently than most search engine marketers would. The search engines equate performance with CTRs, whereas a search engine marketer would define performance as ROI. So, that brings up the question, "Do ads with higher CTRs earn a better ROI?"

At ClearSaleing, we decided to find out. To answer this question, we used our advertising tracking technology across several clients in different industries to measure the performance of an ad text in terms of total profit, total revenue, conversion rate, profit/order, revenue/order, profit/click, revenue/click and CTR. For the purpose of this test, we used Google since they are the only search engine that provides the option to rotate the distribution of your ad text, which makes sure each ad runs an equal number of times.

We allowed each ad text to run for a long enough period to gather a statistically sound sample of impressions before we began to measure its performance. Of all the metrics ClearSaleing captured, we focused our attention on the most important metric to our client's search marketing; profit. At the end of the day, we want to run the ad texts that generate the most total profit for our clients, regardless of what the other metrics might tell us to do.

After the testing period was complete, we analyzed the data. We stack-ranked each ad text within each ad group according to several metrics, including CTR, profit, etc. We found that there is no statistical evidence that proves the ad text with the highest CTR is the ad text that produces the most profit. In many cases, we found the most profitable ad text to be the ad with the lowest CTR. The results of the study led us to conclude across all clients that judging ad text performance based on CTR is not an indicator of an ads true performance, as is common belief in search marketing.

Our study did not try to answer the question, "How could ads with higher CTRs produce less profit than ads with lower CTRs?" To answer this, we would need to employ a consumer behavior specialist and even then, our answers would be subjective at best. Nonetheless, we did try to put some sense around how the language we use in ads affects the ad's performance. Here is an example of 3 different ad texts used for a client in the musical instrument space and our thoughts on how the language dictated the ad's performance (note: we changed the client's name to hide their identity):

Ad A: According to the search engines, this ad would be our most "compelling" because it had the highest CTR. This ad had the broadest focus and an attractive call-to-action without any conditions. We found that we sold a lot of low end accessories from this ad, with most of the orders coming in at under $100. This ad also had the lowest average order size of the three. Because of this ad's focus on low price and free shipping, it seemed to bring in the most cost-conscious consumers.

Ad B: This ad was more targeted by focusing on the two top-selling guitar manufacturers. These two manufacturers sell some of the more expensive guitars in the market. Therefore, users that clicked on this ad might be more serious musicians and, more importantly, looking to spend more money because they want guitars instead of accessories. The free shipping offer is attractive, but unlike the first ad, it got the buyer thinking bigger purchase. We did sell more guitars from this ad text than we did in ad A.

Ad C: This ad had a definitive qualifier. It basically told searchers that if what you want is not over $99, you are probably better off shopping elsewhere. Therefore, the people that did click this ad were more serious buyers, which was proven by the fact that the average order value was higher than the other ads, as was the conversion rate. Overall, this was the most profitable ad even though it had the lowest CTR and least "compelling" message.

For each client that was involved in this study and each of our clients since, we have turned our focus from trying to achieve higher CTRs to trying to earn more profit from each ad text, and in the process, we have often found the ad text we selected is not always the ad text with the highest CTR, therefore, in essence, we have lowered our client's CTRs on average to achieve better performance in terms of the only metric that matters; profit.
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About Author
Both Nikhil Garg & Adam Goldberg are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Nikhil Garg has sinced written about articles on various topics from Adsense, Marketing Campaign and Internet Marketing.
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