Rand Fishkin made an interesting comment on ad optimization in a recent blog post. At the bottom of his post, he adds:
high CTR doesn't always mean better conversions, though there is often some correlation
This quote was then taken by GuyFromChicago at DigitalPoint Forums for a discussion. What are your thoughts of Rand's statement? Is he wrong? Is there a meaningful correlation between click through rates and conversion rates?
GuyFromChicago starts off with his opinion, saying that they can be a relationship between ad copy and conversions as long as the searcher will find what s/he expects beyond the ad:
While CTR and conversion rates can be related - theory being if your ad is well written (in relation to the keyword+match) and an accurate representation of what a searcher will find after clicking your ad the likelyhood of them converting will be higher - I've not seen this play out in the real world with any degree of statistical relevance.
But the problem remains that there is no statistical relevance, a thought that is echoed by other members. Some say that you can see a correlation if you have so many large advertising campaigns across a variety of niches, but this would take a long time to study. Another member feels that statistical relevance is even overrated.
Forum discussion at DigitalPoint Forums.

Comments:
Vamsi
07/27/2007 11:02 am
Higher CTR means more traffic on your website and so the sales will also increase. CTR increases only when the customer is satisfied with our adcopy. For a sale or a conversion to happen the primary requirement is that the customer should checkout your webpage. If we are sure on the relevancy of landing page with adcopy the scope for a sale is more and it increases further with increase in CTR.
Pay per Click
01/08/2013 06:30 am
PPC stands for Pay-Per-Click, a type of paid search advertising. PPC ads can appear in two places: search engine results pages and on various websites with advertising space. While your search engine optimization efforts are a long-term strategy, PPC is usually a short-term strategy to give your business a boost in visitors and sales. It’s also the kind of marketing strategy that needs to be monitored closely and tweaked often.