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Higher CPC getting less conversion - Can anyone interpret?

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# 1
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Screen Shot 2013-06-13 at 4.50.45 PM.png

 

Can anyone help me on this one?  I'm running an experiment for the past 10 days - Control has a 30 cent CPC and Experiment has 60 cent CPC - Experiment running at 50-50.

 

What i don't get is the significant drop in Conversion on the Experiment Group.  No idea how to interpret this as I expected that my conversions would increase because of the higher position of the experiment.  Any hypotheses?

 

thanks,

 

Tudor

3 Expert replyverified_user

Re: Higher CPC getting less conversion - Can anyone interpret?

Collaborator ✭ ✭ ✭
# 2
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Hello ,

 

It is the same as Hal Varian explained in this video, sometimes a lower CPC is the best solution from a test, from minute 3:18 about "Maximizing profit"

 

http://www.youtube.com/watch?v=jRx7AMb6rZ0

 

My theory is that avg.pos of 3.3 is a higher position in the first row of results, it is position 4.

Position 2.7 is a lower position beeing on row 3 of results, beeing pushed lower on the screen by the first position that can have sitelinks , address and link to a map.

 

The people who click for the experimental Ad on position 2.7 have already checked out the other offers and they are pretentious, they don't like some of the offers, and they click to see if yours is better than links no 1 or 2.

 

The people who click on the first row ( Ad1 or ad 4 ) are impulse buyers, they want to purchase fast, no matter what other dozen offers there are on the page.They don't want to compare , their time is money.

Impulse shopping is the engine of many busineses.

Re: Higher CPC getting less conversion - Can anyone interpret?

Collaborator ✭ ✭ ✭
# 3
Collaborator ✭ ✭ ✭

Here is a sample of positions, where position 1 is not even occupying all the extra space with social extensions, user reviews or a map link

 

sample-position.png

Re: Higher CPC getting less conversion - Can anyone interpret?

Follower ✭ ☆ ☆
# 4
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Hey Adrian, that is really good insight. I'll make sure to see if this follows the same pattern for my business ie, I have to be either #1 or #4 to have the best ROI.  Thanks again.

Re: Higher CPC getting less conversion - Can anyone interpret?

Top Contributor
# 5
Top Contributor

And we are all going to have to watch closely as Google roll out the image extensions. These will only appear in position 1 - so more people are going to be pushing for the top ad slot. We will (most likely) end up paying quite a lot more for positions 2 and 3 with no added benefit - in fact they are likely to perform worse since #1 with images is projected to get a better CTR - and if more people are clicking on the first ad, fewer are clicking on 2 & 3 (and 4, 5, etc)

 

Image extensions are likely to knock all your calculations off....

Re: Higher CPC getting less conversion - Can anyone interpret?

Follower ✭ ☆ ☆
# 6
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Good call, thanks for the warning.

Re: Higher CPC getting less conversion - Can anyone interpret?

Collaborator ✭ ✭ ✭
# 7
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And if you travel to the land of the Display network with it's reach of 83% of unique Internet users around the world, you must use this feature to bring your Ads "above the fold", to get a decent CTR

 

http://www.google.com/ads/innovations/abovethefold.html

Re: Higher CPC getting less conversion - Can anyone interpret?

Top Contributor
# 8
Top Contributor

This is interesting;

Since the change CTR is not yet with statistically significant - I would let the experiment run another week;

(Conversions are after clicking. If no significant change in CTR you need to look for a reason somewhere else...)

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
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Re: Higher CPC getting less conversion - Can anyone interpret?

[ Edited ]
Collaborator ✭ ✭ ✭
# 9
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Average position is a comparison for where you ad was positioned when it received impressions not clicks .

 

If you truly want to see in what Ad Slot your keyword generated clicks use the Analytics / Traffic sources / Advertising / Adwords / Keywords / click on one keyword / then Choose "Secondary Dimension" = Advertising / Ad slot position.

 

You might be surprised how overwhelming are clicks on the Ad Slot position 1 , in comparison with other positions.

Ad slot = Top (1,2,3) or RHS ( right hand side ) = 4 to 11 ( attention not 10 ). That is why you do not chose the "Ad slot" metric but the "Ad slot position"

 

 

 

ad-slot-position.png

Re: Higher CPC getting less conversion - Can anyone interpret?

Collaborator ✭ ✭ ✭
# 10
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My last addition to this subject : To view the similar data from the AdWords interface you can go to the Ads tab, and click on "Segment" and choose "Top vs Other", and for every Ad you will see how many clicks were received in the top position ( 1 ,2 or 3 ) vs other ( 4 to 11 for the first page and also any position from the second page , or the 3rd, etc )

 

 

 

ads-segment-top-vs-other.png