Stats are a vital part cf your success. If you can’t follow the resu Its cf ail the changes ycu’re going te be making te your ads and your pages, then you’re neyer going to maximize your revenues.
But reading your stats can be confusing. You’re going to be staring at ail sorts of tables filled with ail kinds of numbers which can be rearranged and reorganized in ail sorts of different ways.
That’s why it’s crucial te know how to read your stats and understand the figures.
15.2 The Most Important Stat 0f Ail
There’s one figure that’s more important than any cf the others. Know which
one 1m talking about?
Revenue! If you aren’t making money, no other stats matter.
If you are making money though, the next stat you want to watch is your CTR. The higher the percentage of clicks to page impressions you receive, the higher your CPM will rise — and the higher your revenues will become.
When you make a change to your ad placement, to your keywords, to your ad colors or anything else, wait a week and check your stats to see the result. And look first at your revenues.
Bear in mmd too that when you have multiple ads on a page each ad unit counts as one impression — but you won’t be able to get three clicks from them! Multiple ad units then can reduce your CTRwhile still giving you good reven ues.
You might also want to translate your resu Its into charts. If you do want to do that, the most important things to look for are trends in CTR and in earnings. Tracking impressions too will also let you see any radical fluctuations in traffic.
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15.3 Optimum CTR
Much of your success will depend on lifting your CTR as high as possible. Obviously, the more people who click on your ads the more money you should make but it’s flot always easy to know when you’re inviting as many people as possible to get clicking. I ‘ve gone from less than 1 % CTR to over 8% on some sites but I know of some sites that are getting over 30% CTR!
Your CTRwiII depend on a number of different factors, including:
• Site Content — Some types of content get more clicks than others (but don’t necessarily make more money per click...)
• Site Design — We’ve already talked about the importance of where you place your ads and how you place them.
• Num ber 0f Links — Why give your ads competition? If people want to click away from the page, you should get paid for it.
• Ad Relevancy — If you’re flot getting served ads that are relevant to your content, you’re going to have a low CTR.
15.4 AdSense Arbitrage
Once you get to grips with the numbers that you see on the stats pages and your logs, you might notice something interesting. You might see for example, that you’re getting 5,000 ad clicks on a page each month and that page is generating $1500.
Divide $1500 into 5,000 clicks and you’ll realize that each click for that type of content is bringing you 30 cents.
That means that when you come to buy content, as long as you spend less than 30 cents for a click to that page, you’re going to make a profit. And one way to do that is to open an AdWords account and buy advertising space on Google’s search pages. You could pay as little as 5 cents per click, giving you a profit of 25 cents each time your 5-cent users click on your 30-cent ads.
That’s AdSense arbitrage and it sounds like a foolproof way to increase your reven ues.
If it were that easy, everyone would be doing it.
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The first problem with arbitrage is that you can neyer get a 100% CTR. Not every 5 cent click you buy is going to give you 30 cents back — and every impression that doesn’t result in an ad click is going to eat into your profits.
With these kinds of figures (and obviously, yours are going to be different), you’d need a 16% CTR to break even. (If every ad click costs 5 cents and gives you 30 cents, you can afford to lose five out of every six clicks or
16%).
So if you can see that you’re getting a 16% CTR, buying advertising on AdWords to send traffic to your AdSense ads cou Id be a good deal.
Or not.
The second problem with arbitrage is that your CTR rate is based on users coming from your current traffic sources. The users you buy through AdWords might behave differently. They’ve already clicked on an ad once so they might not want to click on an ad again.
Or alternatively, because you know they’re the type who do click on ads, it’s possible that they’re exactly the type who’ll click on the ads on your page.
Results from using arbitrage vary. Some people report that the clicks they buy on AdWords give them less revenue, others report that they’ve increased their CTR.
The real key to arbitrage success is buying traffic based on the right keywords. And to do that you need...
15.5 WordTracker
WordTracker is a great way to find keywords to target for arbitrage. The idea is simple: if you can find popular keywords that few sites are targeting, you can increase the CTR of the ads you buy and improve the chances that users will click on the ads on your page. lt’s those keywords that will give you the best revenues for arbitrage—and the most clicks from search engine listings.
WordTracker actually helps in four different ways.
First, you enter a keyword—say, “football”. WordTracker will then give you a list of hundreds of different keywords related to football—words like “stadium” and “team” and “football player”. Some of those words you’ll probably have thought of, but lots of them you won’t.
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Now you’ve already got more keyword options than when you
Fig. 15.1 WordTracker: “flnd the best keywords for your website”. Says if ail really!
The next step s to see how popular these keywords are. WordTracker looks across ail cf the main search engines and tells you how many people searched for each keyword in the last 60 days. That’s certainly interesting information in itself but there’s not much point in targeting a word that 1,000 people search for every couple cf months if a million Web pages are already
targeting it
Your ad would appear on page fifty-something of a search engine listing and get very few clicks.
The next stage is where things get really interesting. Wordtracker compares the number of searches that people are making for each keyword with the number of sites targeting that keyword.
It even awards each keyword a score that indicates the size of the
opportunity for new pages that want target that particular keyword. It then becomes easy for you to see which words are likely to give the best search
started!
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engine listings—and which will get the most clicks for the lowest prices when you pay to advertise.
For example, if you asked WordTracker to look up the word “football,” you might find that 3,474 people look for “shoulder-pads” each day but only 2,375 Web pages are targeting that word. If one of the pages of your football site targets that keyword, you’re almost certainly going to find yourself high on the search engine listings, giving you plenty of free traffic.
But if you also choose to pay to advertise your site on a GoogleAd, you can be confident that you’ll get plenty of clicks—and great revenues.
WordTracker is a fantastic tool. It should definitely be in your money-making toolkit. Take a look at it at www.wordtracker.com.
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