Testing: at the granular level. Is this keyword ROI positive or negative? Which ad makes me more money, A or B?

How to determine when a test is conclusive: get http://winneralert.com, which runs each test through a statistical package to determine true significance. Or use http://askhowie.com/split to run each one manually. It’s a complicated science, but the basic question is, “How confident am I that this result is real, and not based on chance?”

Overall conversion rate: it’s an average. Why do you need to know it? Only when testing a new medium to find out how much to pay. Once you know the conversion rate per medium (which in AdWords means per keyword), that’s all you care about. Each profitable keyword may eventually gets its own sales funnel. Again, the more granular you get, the more you learn. It’s the difference between a mediocre mutual fund and the 3-4 stocks within it that are making giant profits.

How many conversions: See question about clicks, above.

Industry standard conversion rates: I have no idea. What matters is not how your rates compare to everyone else’s, but whether you are profitable.

Cheers,
Howie

Thanks for answering my questions on your blog. Based on my previous experience, Just few people take time to answer the questions from their readers. You are the people who care of your readers and provide help to them. I really do appreciate for it.

I totally agree with you, as a marketer, we need to know the market and target audience. We need to segment them to test and figure out what’s the really thought in the their mind behind the keywords they are searching for on search engines.

In your post, you mentioned that ” If you are close to breakeven, then you can almost certain become profitable quickly by testing and improving the whole process.” which level do you talk about, campaign level, adgroup level or keywords level. Pls help to verify it. Thanks

I also have following questions regarding conversion rate. Hope you can help to answer.

1. When testing conversion rate of sales letter by using adwords. there are two types of keywords converting keywords and non converting keywords. somebody say you need to get 100 clicks to make conclusion. somebody say you need to get 200 clicks to make conclusion. somebody say, you need to keep on running your ads until you lose money after break even point at keywords level. Which one is correct and what’s your recommendation.

2. Different converting keywords bring in different conversion rate. How to calculate a over all conversion rate? And there are 80% of keywords or even more than 90% keywords don’t convert to sales. Do I need to count non converting keywords when calculate over all conversion rate?

2. How many conversions do I need to get an accurate conversion rate?

3. What’s the general industry stand of conversion rate of different price level of info product like $47, $97,$197,$497 and $997? Somebody say there is no any stand. Somebody say, the industry stand of conversion rate with a $97 price tag is only 0.5%. Which one is correct?

Once again, thank you for your time, knowledge and great help.