Split Testing #2 – The Economics
Let’s say you’re running an online campaign to get people to signup to download a trial of your new software product. The signup/download is the ‘conversion’. Let’s say you spend $10,000 to get 10,000 people to the site (e.g. PPC a dollar a click) and that your site converts at 1% – that comes out at 100 conversions. That’s $100 a conversion (hmm… must be a chunky product!). If you use testing to improve the conversion rate by just 0.5% then you’ll get 150 conversions, bringing the PPConversion down to just $66-ish.
That sounds great, ppc can be horrendously expensive for little return IME