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Did you remember to adjust your click-through rates?

by Claudie Clot, CEO of advancis.com

The accuracy of the new ranking can be demonstrated by measuring the cost per click for each project. The lower the cost per click, the better the project performance. Hence, the best project will have the highest adjusted rate and the lowest cost per click.

Let's assume that we have spent $1000 on each project. Based on the CPM and actual click-through rates, project 1 generated 225 clicks ($1000/$340)x1000 x 7.65%). The cost per click: $4.45.

Similarly, we get :

When comparing the ranking resulting from the adjustment of click-through rates to the ranking based on cost per click, we can see that they are identical.

Unfortunately, the majority of marketing managers still base their decisions by comparing response rates based on actual click-through rates.

Astute online marketing managers will quickly point out that it is necessary to take the comparison activities a step further by also comparing actual sales generated by each project. Clicks and visitors are just part of the equation. For most companies, the success of online marketing endeavors is ultimately measured by their additions to the bottom line. In such cases, it is critical to incorporate sales figures into the mix to develop optimal online marketing strategies.

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Previous articles:

Building a powerful eBrand

The hidden danger of growing site traffic

Can small businesses succeed on the Web?

Ecommerce is not about selling

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