If your ad campaign is not optimized and has a clear call to action that increases conversions and overall ROI then you are losing both money and opportunity. When we say optimized we mean that the content of the ad and the page that the ad takes the user to are completely matched. Full marketing optimization is important because having a user actually interact with your website rather than bounce (leave quickly) has a direct impact on the conversion rate of your traffic. Treatment studies are done on a weekly/biweekly/monthly (varies depending on the ad campaign) basis to make subtle optimization changes to enhance overall conversions received through your ad campaign. Making even a small change, such as like the color of your submit button on a form, or where in your website you are presenting your products and services, can make a big difference and lead to higher conversion rates.  Below is a brief introduction of each of the elements that contribute to a successful ad campaign

CPC (commonly known as cost per click or pay per click):  Cost per Click is an ad campaign where the advertiser only pays for an advertisement if the prospect clicks on the ad thus reaching the page in which the advertiser is advertising.  CPC can be applied to both Keyword searching and placement targeted advertising. Why is cost per click effective?  Running a campaign on a cost per click basis can be effective because the advertiser only has to pay for their ad if the user actually clicks on it (thus the term cost per click or pay per click).  This form of advertising is available through all search engines, Google, Yahoo, MSN, etc…
i)    A good example on how to effectively use CPC is to figure out how many clicks it takes to get a conversion.
ii)    Figure out the amount of money it takes to get a conversions.
iii)    Then subtract your ad campaign costs from your Gross profit.

Why is it so important to optimize your ad campaign? Imagine if you’re getting a 2% conversion rate and you’re spending $1 per click. For every $100 dollars in advertising you’re getting two sales.  If your sales price is $50 dollars per product you’re just breaking even, and breaking even is not a good place to be for a business venture. Now imagine if you fully optimize your campaign and you receive a 6% conversion rate. Now you’re bringing in $300 dollars for every $100 dollars spent in advertising. You’re return on investment is 200%, a much more attractive business scenario