Comments on: Google Adwords – Problem 1

By: Stuart

Stuart — Fri, 09 Mar 2007 00:15:00 +0000

What a blog..This is so HELPFUL. I am using these methods in a test campaign where I am working from scratch and working towards $4,500. I am currently half way nthere on day 18

By: Marlene

Marlene — Thu, 08 Mar 2007 20:04:17 +0000

I would go for ad2, the more the merrier as the saying goes!

Seriously, I am a newbie and from what I understand a lot of clicks to your website is very good news. If you are making money while getting visitors to your site it is like having your cake and eating it.

By: Henry Stemke

Henry Stemke — Thu, 08 Mar 2007 06:17:06 +0000

I really don’t understand this.

Sorry.

Henry

By: Rajesh

Rajesh — Thu, 08 Mar 2007 06:01:01 +0000

Hi,

The second campaign is more profitable as it’s giving a profit of 1509.434 dollars whereas the first campaign is giving a profit of 1384.57.

For first campaign the calculation for profit is

.008×8602=68 (no. of sales) x 27 (profit from each sales) = 1836 dollars – 451.43 (cost to run the first campaign) = 1384.57 dollars

Similarly for the second campign, the profit is calculated from this formula-

0.006×13,767= 82.602 (no.of sales) x 27 (profit from each sales) = 2230.254 dollars – 720.82 dollars (cost of running the 2nd campaign) = 1509.434 dollars

Hence from the above results, second campaign is more profitable (as per my understanding)

Rajesh

By: Steve Galbraith

Steve Galbraith — Thu, 08 Mar 2007 05:30:26 +0000

I like Ad 2’s potential. Ad 1’s output is smaller, true, with a better % profit ratio, but the CTR impresses me with Ad 2 because of it’s exponential possibilities down the road as back-end referrals will recycle profits over and over. The key is optimizing the ads so the web spiders can take the banners and spread them throughout the google world of cyberspace and bring an attractive number of browsers to your site, which will bring in buyers and that customer database will exponentially grow, contingent on the usefulness and vitality of the product being sold.

By: Reynold Tan

Reynold Tan — Thu, 08 Mar 2007 02:59:32 +0000

Both ad hv it good point,if I hv money I will choose Ad 2.If I hv a choice to invest and can allow me to repay you after I hv earn the money in Ad than I may choose Ad 2 to do this business investment. At this time I really really hv no money to continue pay the ad if required ad business or also to pay any mentor training fee required so as to continue to do this ad or sale marketing buinsess.
Keep this matter bet us only.
thank you
Reynold Tan

By: Frank Haywood

Frank Haywood — Wed, 07 Mar 2007 11:18:27 +0000

I’m really surprised at some of the answers since I posted.

DO. THE. MATHS.

It’s got nothing to do with the fact that ad 1 has better conversion. And Socrates isn’t going to keep both ads running, that’s the point of this exercise!

(Yes I know he will run another one to try to beat his control…)

Ad 2 delivers MORE CUSTOMERS and MORE PROFIT.

In business, you want BOTH.

The better conversion and cost per conversion for ad 1 is unimportant as ad 2 is clearly the better performer in terms of CUSTOMERS and PROFIT.

May God help your businesses if you can’t see this.

By: Frank Edwards

Frank Edwards — Wed, 07 Mar 2007 02:24:39 +0000

Number 1. More clicks seemingly leading to more money, end of story.

By: Greg

Greg — Wed, 07 Mar 2007 01:53:40 +0000

Number 1

Higher conversion ratio and best price per conv

By: Sunnie

Sunnie — Wed, 07 Mar 2007 01:17:34 +0000

I am going to have to agree with PapaJo adn Andi, as Even though ad1 looks pretty solid, ad2 brought in more customers per click. More revenue, end of story.