A lot of pay per click marketers place too much important on click-through rates. Yes, it’s true, click-throughs (CTR) are important and you want to measure your CTR, but at the end of the day what is really important is ROI.
Let’s assume that you spend $1 per click on a PPC campaign. In one day you get 10 clicks so you’ve spent $10. How many of those resulted in a sale? If you got no sales then you had no ROI. You’ve spent $10 and made no money.
But let’s suppose that you are paying $2 per click and you got the same number of clicks. Now you’ve spent $20; but suppose that one of those clicks resulted in the sale of a widget that resulted in a net profit of $22. Now you’ve got an ROI of $2.
That’s not much, I know, but it’s better than $0, right?
It’s great that you’ve got an ad that can draw clicks, but you have to look beyond your ad and see your landing page for what it is. If it isn’t converting your traffic then you’re just throwing good money after bad. We’ve discovered that sometimes a simple tweak of a landing page can result in more conversions.
Now imagine in that second scenario above that you got 2 conversions instead of 1. Your ROI moved from $2 to $24. Now imagine doing that every day. Isn’t ROI a lot more attractive then CTR now?