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Adwords, the name of Google's pay-per-click advertising system, provides
highly relevant text ads alongside regular search results.
Google enables advertisers to create an unlimited number of text ads,
grouped together in an "Ad Group". In the Google system, advertisers
provide a list of keywords for the "Ad Group". Google uses the
advertiser's keyword list to determine which search queries trigger the
display of the advertiser's Adwords. When web surfers search on Google
(or one of its partner sites) for one of the advertiser's keywords, the
system displays one of the advertiser's corresponding advertisements.
When advertisers create multiple Adwords to form an Ad Group, Google
will rotates the Adwords evenly. As times passes, Google compiles statistics
on the performance of each Adword. The primary statistic is the "click-
through rate" (CTR), which is a ratio of how many people have seen
the ad (impressions) to how many people have clicked on it.
Google gives advertisers the ability to run multiple Adwords at the same
time. The system makes it easy to try different ideas and see which result
in the highest CTR. You can use this strategy to test response to specific
headlines, which you might use in print ad campaigns or direct mail programs.
As you can complete the testing in a matter of days, you can get useful
results more quickly than any other testing technique.
A recent study of business-to-business marketers revealed that surprisingly
few companies are bothering to test their copy today. We think those companies
that take the time to test can dramatically increase their campaign responses
above those of their competitors. When companies fine-tune their direct
marketing communications with real world testing, they will gain a real
advantage in the marketplace.
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