The arrival of MSN in the PPC marketing space had plenty of people speculating and asking a variety of questions with regard to cost per click and cost per action. Recently we decided to test Yahoo! and MSN head-to-head.

We chose four research partners, each in very different areas of business, and ran PPC ads for each of them on both Yahoo and MSN.

While the difference in conversion rates between the two was not significant, the Cost per Action was substantially lower with MSN in three out of four cases.

Across these four advertising accounts, the CPA on MSN was lower by an average of $38.24, or more than 60 percent.

What is the reason for the lower CPA at MSN?

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