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In split testing, you compare pay per click report results between two marketing channels in realtime. You can create two ads in Google AdWords for two different sites using the same text within the same ad group, and then perform pay per click analysis on each ad. Say for example that you create an ad for xylophones in the Musical Instruments group, and then place the ad on ABC.com and DEF.com. In realtime you can look at the pay per click reports and determine that keyword “wood xylophone” performs better on site DEF.com. Aha! The pay per click tool of split testing has just shown you that DEF.com attracts more people interested in buying a wood xylophone. You can adjust your pay per click bid management accordingly.
A caveat: Turn off ad syndication and auto optimization, sicne these may throw off your pay per click report results.