What is a P-Value and Why PPC Specialists Should Care

By: Roman Myskin - Sept. 3, 2025


If you’ve ever run an A/B test in your PPC campaigns – testing two ads, two landing pages, or even two audiences – you’ve probably faced the question:

👉 “Is the difference I see real, or just random chance?”

That’s where the p-value comes in.


The Problem with “Just Looking at Numbers”

Imagine you’re running Google Ads and see these results:

Ad B looks better, right? But what if those 2 extra conversions happened just by luck? Maybe tomorrow Ad A will catch up. Without statistics, you can’t tell whether B is truly better or if it’s just noise in the data.


What is a P-Value (in Plain English)?

The p-value is simply a probability score that tells you:

Think of it like this:


How PPC Specialists Use It in A/B Testing

When you test two ads or landing pages, you want to know whether one really performs better in terms of Conversion Rate (CR).

This is where the Chi-Square test comes in. It’s a statistical method that compares how many people converted in each group vs. how many didn’t.


Practical Example 1: When the Difference is Real

You run a Chi-Square test, and it gives:

That means there’s only a 2% chance the difference is random.
You can safely conclude Ad B wins, and scale it with confidence.


Practical Example 2: When It Looks Better but It’s Not True

The CR increased from 5% → 6%, so it seems Ad B is better. But when you run a Chi-Square test:

This is a high p-value, meaning there’s a 62% chance this difference is just random.
Even though it looks like Ad B is winning, you cannot be confident it’s actually better. Making changes based on this small difference could waste your budget.


Why This Matters for PPC

  1. Save Money – Don’t waste budget on “winners” that only looked good by accident.

  2. Make Confident Decisions – Know when results are solid enough to act on.

  3. Improve Campaigns Faster – Identify truly better ads, audiences, or landing pages.


Takeaway

The p-value isn’t about complex math – it’s a confidence tool.

Next time you see a conversion rate increase, remember: it may not be real until the p-value confirms it.


Real Case Study

On the Internet, you can find many marketing cases claiming that males convert 50% better than females, leading to decisions to create separate campaigns for this audience and reallocate more budget accordingly. Or, you might see statements like: our best-performing age group is 35-44 years old, while the worst is 55+, so we decided to turn off the latter due to budget limitations.

I have always wondered how to include both clicks and conversions in my analysis since I need to consider both lead quantity and cost efficiency.

Here in the GitHub project, I'm exploring age, gender, device dimensions, and their statistically significant differences between each other

https://github.com/BookerSK/Statistically_approved/blob/main/Chi_Square.ipynb 



Home