Issues of test design, keyword auction dynamics, and statistical significance are complex. To help marketers more reliably test key variables in their AdWords accounts, Google has created a killer little feature called AdWords Campaign Experiments.
You've no doubt heard of the concept of A/B testing landing pages by evenly rotating them to website visitors. The same concept, applied to ad copy, is behind the ad rotation feature in major paid search platforms, introduced by Google in February 2002. (Note documentation in today's version of the feature. Ever sticklers for accuracy, Google now promises to rotate ads "more evenly," not entirely "evenly.") The reason these tests must be done with strict form is, of course, the scientific notion of control and an experimental group that lend statistical validity to any experiment. As much as possible, all other factors must be held constant to gain insight into the independent impact of changes in a single variable. Since those changes in themselves can touch off a dynamic response involving other variables, the two traffic streams being compared must be run concurrently with no bias in conditions.
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