Third Party AdWords Automation Software Lowers CPA Up to 53%

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WordWatch Conducts Study on Clients to Determine Effectivness of Automated Bidding

Example WordWatch account

Example of an account placed on the WordWatch bid automation system.

Marketing automation has long been a topic of lively discussion amongst Internet marketers, with strong opinions regarding effectiveness and usefulness. With that in mind, AdWords management startup, WordWatch, recently conducted an internal study to determine the effectiveness of automated AdWords optimization software.

The study was comprised of 408 accounts that had at least one campaign being managed manually and one campaign managed by their software. The campaigns were split into two groups: Group A under WordWatch automated bidding, and Group B being hand managed.

In the 28 days that Group A was placed under the control of automated bidding, the campaigns began to show significant improvement over their Group B counterparts. On average, the campaign cost-per-conversion (CPA) was reduced by 37%, but some campaigns experienced a reduction of up to 53%.

“One of the hang-ups potential clients have with signing up to a service like this is that they’re initially scared to let a computer manage their budget,” Todd Wilkinson, CEO and co-founder of WordWatch, said. “But when advertisers are able to see that in as soon as one month they’ve doubled their sales or cut spending in half, they couldn’t be happier.”

During the month of testing, Group B’s costs-per-conversion remained relatively static, with variations measuring as much as 6% higher or lower the average at any given point in time. Variations spiked on some days, but returned to the mean shortly afterward. The overall trend on ROI of Group B was a gradual decline that accelerated toward the end of the 28-day period. Group A’s gradually decreasing CPA resulted in increased ROI for the campaigns under automated management.

Other notes of interest from the report: on the campaigns in Group A, the average position was 3.7, yet produced a higher conversion rate (3.25%) than Group B (.40%), whose campaigns average position was 2.8. This finding lends more credibility to the theory that being the top-ranked ad may net an advertiser more clicks than lower positions, but they aren’t always the most relevant clicks.

Advertisers also noted that after putting campaigns on the WordWatch system, they were able to free up as many as six hours per week to work on other administrative duties and customer relationship management.

“With AdWords, it’s tough to manage a growing account, even if you’re an expert. There comes a point when there are so many keywords, it’s just impossible to keep up,” Wilkinson said. “That’s exactly why we created our product for advertisers who value their time as well as their money.”

To learn more about WordWatch, please visit http://www.wordwatch.com.

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