3 Ways Landing Page Optimization Improves Your PPC Campaign By: Martin Armstrong Whether your Google AdWords pay-per-click (PPC) advertising is not delivering the revenue you had expected, or you simply want to find ways to generate more revenue with the same ad spend, optimizing your landing pages can kick your PPC campaigns into overdrive and dramatically increase your return on investment. Here are three ways landing page optimization improves your PPC campaigns. 1. Lower Cost Per Click (CPC) Google AdWords runs on an auction system where the highest bidders are able to secure the top positions on the page. Basically, bidders pay the amount of the next highest bid below theirs. So if your bid is $2.00/click and the next lower one is $1.80, you only pay $1.80. However, to keep the top results highly relevant for searchers, Google also assigns a quality rating to each ad group. Therefore, the amount you pay for a click is a product of the lowest bid below yours and your ad group's quality score. Landing page optimization lowers your CPC by improving your quality scores. Google looks for a tight correlation between the keywords, ad text and landing page content when calculating a Quality score. Testing different versions of your landing pages will show where you can raise your quality rating and lower your CPC. 2. Better Page Position Lowered costs will allow your ads to place higher on the page, improving the ads' visibility and raising the click through rates (CTRs) for your campaign. CTR is the number of clicks compared to number of times the ad is displayed and is another cue Google looks at when determining the quality of your ads for searchers. With successful testing of your landing pages you can set up the following feedback loop. * Optimized landing pages get a better quality score. * A better quality score lowers CPC. * Lower CPC wins higher page position. * Higher page position improves CTR. * Improved CTR gets a better quality score. * A better quality score lowers CPC. * And so on. 3. Higher Conversions Of course, while testing your landing pages, you will always seek to improve your conversions. In the end, your ad spend should be tied to a goal that factors in all of your decisions. Paying less for more clicks makes no sense if the clicks do not convert to your goals and should be avoided. Fortunately, the better your PPC visitors convert, the more your landing page will appear to meet the needs of these searchers, and this should also improve your quality rating with Google. By continuous testing of your landing pages, you can keep fueling the feedback loop that drives down costs, ensures relevance, and leads to better conversion. All of which put more money in the bank.