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There are so many ways you can do A/B testing, but in the end, you're just looking for the best ad or landing page in order to convert more people while paying less money. You can A/B test ads, banners, landing pages, entire websites, forms, etc. If there is something that a potential customer can react to, it can be split test, and it likely should be if you want to know what works best for your target demographic!
A/B testing is also called split testing, which is what I also referred to it above, and it's essentially setting up various things that all have the same goal. You can set up 10 ads within one Adwords campaign to see which ones are performing the best, removing the ones that don't work well, and possibly setting up more that mimic the top performers already within the account. You can do the same with banner ads when it comes to advertising, which most of us already do, and this will help increase your click-throughs as well as drop your CPC if you're paying a flat fee for the banner advertisement. One of the easier places to do split testing with banners are on advertising networks like BuySellAds because they allow you to upload the same creative for a single ad. Now, I know you can do this in various other places online, but BSA just makes it really user-friendly and that's why I talked about them lol.
Patience is key when doing A/B testing
If you're not a patient person, you likely won't have much hair after A/B testing, because you'll be pulling it out every day when you don't see much data coming in lol. A/B testing, or split testing, needs to be done over a few weeks or even a few months to get the best possible idea of what works best for your audience. I will usually run a bunch of ads for the same campaign, targeting the same keywords, and see what is working best after 3 weeks. I'll remove the 3 worst ads, leaving me with at least 7 ads, and keep those going for another 3 weeks. After that, I'll use good judgment to remove the ones that are underperforming and keep the rest. Now, if you have the idea of removing the 3 worst ads, then removing the next 3 worst ads a few weeks later, you could be losing some money. I tend to keep 1 or 2 ads that could be removed, but they're close to being winners in my book, just to see how they do for the next couple of weeks. If they start to pick up steam, I'll keep them around, if they start to drop down even further, I won't think twice about removing them.
My Adwords split testing formula based on 10 ads for 1 campaign: