The financial reward for testing hundreds of different Internet ads
When you create your Internet ads for your lead generation program, it's very important that you create and test many different ads The reason for this is that some ads will attract far more people to click on them while some ads will be duds that nobody clicks on. Without creating and testing dozens or even hundreds of different ads, you will not give yourself the opportunity to create an ad that gets a very high click through rate and beats the ads of your competitors. And getting a very high click thorough rate on your ad will provide you with many financial benefits.
As an example, it can take the testing of over 100 different Google PPC Search text ads to create one ad that delivers a click through rate (CTR) that out-performs all of the ads placed by your competitors.
This is known as a “unicorn” ad. Once you have created an ad that gets a higher click through rate than the ads of your competitors, Google's algorithm will give your high performing ad the top ranking and a greatly discounted advertising fee—sometimes a discount where you are paying up to 30% LESS per click than what your competitors are paying! However, most Google PPC search campaign managers only test a couple of text ads and therefore, they end up paying what is known among expert PPC marketers as a “stupidity tax” for being lazy and placing boring ads that nobody clicks on. Yes, Google punishes advertisers who place ads that get low click through rates by charging them a premium to show their ads.
The financial reward you get for creating great ads that get higher click through rates than the ads of your competitors is not just for Google PPC Search ads. Google, Facebook, LinkedIn, and Twitter all reward you for creating great banner ads (including remarketing ads) that get a higher click through rate than the ads of your competitos by giving you more ad views, top rankings for your ads, and greatly discounted click and CPM fees. And, just like with Google, if you place poorly performing ads that are rarely clicked on, Facebook, LinkedIn, and Twitter will charge you a premium to continue displaying your ads.
Another very important thing to consider with your ads is, if your ads are bad and your prospective clients are not clicking on your ads, those potential clients are instead clicking on the ads of your competitors and they are going to their websites and buying from them. How much is that costing you every day in lost sales? Every week? Every month? Every year?
For example, if you place a Google PPC Search text ad that is shown to 100 people in your target market every day—people who are searching for exactly what you sell—and your ad only gets a 1% click through rate (1 person clicks on your ad for every 100 people who see it), you are missing out on the other 99 people who did NOT click on your ad and instead clicked on the ads of your competitors.
Now, if you create and test 100 different text ads and you create an ad that gets an 8% click through rate (out of every 100 people who see your ad, 8 click on it), you just increased the response rate to your ad by 800%. And, by getting such a high click through rate (an 8% click through rate is considered very good for a Google PPC Search Text Ad) Google will almost certainly reward you by lowering your cost per click while putting your ad in one of the top 3 positions on their home page to give your ad even more exposure and clicks!
The previous example I gave was based on only 100 people per day searching Google for what you sell. What happens if 1,000 people per day search Google for what you sell and you have a poor ad that only gets a 1% click through rate? Then only 10 people out of 1,000 are clicking on your ad and you are missing out on the other 990 people. This is why creating and testing dozens of ads is so important. It is a crime to allow your company to post poorly performing ads that cause you to miss out on nearly all of the people searching to buy what you sell. How much does this cost you in lost sales and lost market share?
In summary, you're financially rewarded for testing and creating great ads that get a high click through rate (creating “unicorn” ads) and you're financially punished for being lazy and creating dull ads that nobody wants to click on.