Why pause a "losing" ad?
Testing ads is one of the activities that is the most undervalued by AdWords advertisers. More about that here.
You'll want to pause ads that significantly underperform compared to the other ads in the same adgroup. This way, the spend that would have gone to the lesser-performing ad goes into other, better performing ads instead. Easy!
If you see a Pause Losing ad in your task list, it means that Opteo has found a statistically significant difference in performance between two ads in the same adgroup.
How does Opteo measure which ad is better?
We use CPI (Conversions Per Impression) as the primary performance indicator. More info about using CPI for ad testing here.
When there aren't enough conversions to calculate CPI, we look at CTR instead. Having a better CTR results in a higher Quality Score which has a magic-like impact on accounts (lower CPCs and higher volume leading to increased conversions and decreased CPA).
It can be tricky to make a fair, apples to apples comparison between two ads. For example, lets say that we're looking at the last 30 days of data and we're comparing Ad A vs. Ad B. What if ad A was running for weeks 1-2 and ad B was running for weeks 3-4? What if you made a bunch of keyword changes in week 3 affecting ad B's performance, or what if there was a big seasonality event (eg. Christmas holidays)? Opteo solves this problem by only looking at data where both ads were running at the same time.
To help you decide whether you'd like to push or dismiss the task, we'll show you the difference in CPI (or CTR) and in ad position between both ads, as well as the statistical significance of the difference.
By clicking Push Improvement, you will pause the losing ad. This will redirect traffic towards higher performing ad(s) and improve your adgroups' performance.
Can I force Pause ad tasks to be based on CPI and not CTR?
You can choose to ignore Pause Losing Ad tasks when they are based on CTR via your Client Settings. This way, you'll only get a Pause Ad task when we find a statistically significant CPI difference between ads.
You can read more about forcing CPI decisions here.