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Why High Online Commercial Intention Trumps High Click-Through Rate When Choosing Pay Per Click Campaign Keywords
Remember that your goal is to buy customers and not just traffic when you're setting up a pay-per-click (PPC) campaign in hopes of selling a product or service. Finding keywords with a high click-through rate (CTR) is important, but there's more to it than that.
This article will explain what CTR is and how you can find keywords that attract more sales.
Keywords with High CTR
CTR is found by dividing the number of ad clicks by the number of ad impressions. Each time your ad appears on a page, it counts as one ad impression. If the ad was clicked on every time it was shown, it would have a CTR of 100%. I can tell you that this never happens, though.
Having a high CTR can mean that a keyword is very relevant to a particular search, but always choosing keywords with a high CTR won't guarantee a successful PPC campaign. You may just want to disregard the keyword phrase with the highest CTR because not every keyword will be effective in converting searches into sales.
If your goal is to sell something using PPC rather than just getting more visitors to your website, then you want to buy customers instead of just traffic. While a high CTR is an important factor, you also need to find keywords which come with commercial intention behind them. This means people searching to buy something, using specific keywords to do so.
Detecting Online Commercial Intention
Not everyone is looking to buy something, so you need find keywords that people use when they are interested in buying something.
Microsoft's Adcenter labs have a nice free tool that allow you to plug-in your keywords and check how they rate for commercial intent. Check it out here:
http://adlab.msn.com/Online-Commercial-Intention/Default.aspx
Adlabs claim that their tool can determine a customer's intention to buy something based on search and surfing history. A keyword with a larger than 0.5 rating means that the online commercial intent is very strong.
This tool can be used to find less common keywords that still have high commercial intention behind them. Such keywords are cheaper than many with a higher CTR, but they may be more effective in converting to sales because the people using them are likely wanting to buy the product or service.
Your PPC campaign will mainly depend on how relevant and how well you have optimized your landing page and sales funnel. But, choosing keywords with a high CTR and high commercial intent will put you on the right track for success with a PPC campaign.
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