What Is Considered a Good Conversion Ratio in PPC Campaigns and How to Improve It?
So you have a great web site that is being advertised on one or several search sites and maybe even display sites, video sites and so on.
You have selected what you consider great keywords and designed the perfect ads.
You activate your ads and within a day, you already receive requests to buy what you have to offer or even make online sales.
Exciting isn't it? To the beginner, making even one sale can be very exciting.
As days go by and precious money is spent, the newbie starts to realize that he/she is going through more money advertising than they are bringing in.
or, net cash flow is actually positive but not enough to sustain the business.
Or even possibly worse, net cash flow is good and positive enough to sustain the business.
Why is this last possibility worse? Because having adequate cash flow may lead to contentment and a false belief that the ads are working at their optimal.
Whether your site is producing "adequate" returns or not, it is important to make sure that your conversion ratio is at its optimal.
First, what is a good conversion ratio? As you may have guessed a good ratio will vary greatly based on your product and goals.
The right ratio is one that allows you to reach your budgeted goals.
If acquiring new prospect requires a 30% ratio then, optimize your online campaigns to meet that goal.
In general, a ratio of 10% to 35% seems to be a good range.
Again, that will depend on your model.
Second, how can you improve your ratio? The following should greatly help.
Monitor your site activity Use a free or paid tool, and there are many, to consistently monitor your site activity.
The tool you use needs to have characteristics that allow you to quickly (and we mean quickly) and simply display the most important information you need for a daily traffic view.
For example, if you are trying to generate leads from your site, then you should at least be able to display, on ONE page (not two), the entry pages, exit pages, search engines, location, keywords used and time of day visitors came to your site and how long they spent on your site.
With this data, you should be able to figure out if your site is loading pages properly and which keywords and demographics are giving you the best conversions and sales.
Your site must be alive with good ads text and keywords It is important that your ads and site be alive.
By alive we mean that you must continually tweak your ads and remove or ad keywords.
By alive we mean that you must be very actively involved in your site content and pages load.
Just like with humans, if you are not active, decay quickly follows and it is much harder to bring back to life a decaying mind and body than one that has been active and alive.
With conversions, keywords are your salesman, so don't send them out unprepared.
Stuffing keywords on your pages to improve ROI will never lead to good conversions.
It would be like sending out salesman out in the field wearing a tag that says "Buy from me.
Potatoes..
Idaho Potatoes.
Planting Potatoes.
Mr.
Potato Head...
".
What people want to see is a representation of their keyword search.
If they search for "Idaho potatoes for gardeners", show them a page that represents, as exactly as possible, what they searched for.
If your keywords do not match the search as closely as possible, conversion will greatly suffer.
Additionally, your ads must also be as related to your keywords and landing pages as possible.
To use the same salesman example, sending a GMO potato salesman to sell to an organic minded consumer will be a waste of time and money, and will result in no sales.
Be precise, continually monitor and adjust your ads, keywords and site.
Keep it alive! Is click through rate important? Yes and no! If no one clicks on your ads or your ads are rarely clicked on, then it could be an indication that improvement is needed.
Click through rate is a representation to how many people MAY have seen your ad and decided to click on them.
Some may say that if your click through rate is less than 3% then it is not the best and if it is less than 1% you better reconsider your entire campaign.
We do not necessarily agree with those assessments.
The bottom line is sales and if you have a conversation ratio of 25% or more and sales of at least 10% of that then even if the keyword has a click through rate of.
5%, maybe you can improve it and should just leave it alone.
Ad location on a page search page Get to the top they say.
Only people at the top do best.
We don't agree.
We do feel that you should be on the first page of a search engine pages but ads can sometimes do better halfway on a search page or even towards the bottom than at the top.
Particularly, if you have a great follow-up system and it is easy to reach you by phone, e-mail or other means to get more information.
You may see some ads at the top that get a lot of clicks but many clicks does not always translate to good conversions and profit.
Ultimately, conversion is what matters.
If your conversion ratio and quality is good then you are most likely doing something right.
Web Hosts slow load and their effect on conversion How can web hosts slow load affect conversion? Trust us; it can be a real killer.
You may have the best ads, keywords, web pages that would result in super conversions but you may never know they can.
Why? Simply because your pages are not loading fast enough! Imagine seeing the perfect ad on the web and decide to click on it only to have to wait 15 seconds or more for the page to load.
We don't know about you but we don't have time to wait and our trust for that web site has just spiral down.
An important note: Many web hosts will advertise 99.
9% uptime.
From our experience, we have not seen that slow loads are included in downtime.
We hope that the information in this article will help you have the most profitable experience from your web ads.
As much more can be said on the subject on conversion ratio, we tried to cover the most important.
Always feel free to ask us questions and send us comments.
We wish you success.
You have selected what you consider great keywords and designed the perfect ads.
You activate your ads and within a day, you already receive requests to buy what you have to offer or even make online sales.
Exciting isn't it? To the beginner, making even one sale can be very exciting.
As days go by and precious money is spent, the newbie starts to realize that he/she is going through more money advertising than they are bringing in.
or, net cash flow is actually positive but not enough to sustain the business.
Or even possibly worse, net cash flow is good and positive enough to sustain the business.
Why is this last possibility worse? Because having adequate cash flow may lead to contentment and a false belief that the ads are working at their optimal.
Whether your site is producing "adequate" returns or not, it is important to make sure that your conversion ratio is at its optimal.
First, what is a good conversion ratio? As you may have guessed a good ratio will vary greatly based on your product and goals.
The right ratio is one that allows you to reach your budgeted goals.
If acquiring new prospect requires a 30% ratio then, optimize your online campaigns to meet that goal.
In general, a ratio of 10% to 35% seems to be a good range.
Again, that will depend on your model.
Second, how can you improve your ratio? The following should greatly help.
Monitor your site activity Use a free or paid tool, and there are many, to consistently monitor your site activity.
The tool you use needs to have characteristics that allow you to quickly (and we mean quickly) and simply display the most important information you need for a daily traffic view.
For example, if you are trying to generate leads from your site, then you should at least be able to display, on ONE page (not two), the entry pages, exit pages, search engines, location, keywords used and time of day visitors came to your site and how long they spent on your site.
With this data, you should be able to figure out if your site is loading pages properly and which keywords and demographics are giving you the best conversions and sales.
Your site must be alive with good ads text and keywords It is important that your ads and site be alive.
By alive we mean that you must continually tweak your ads and remove or ad keywords.
By alive we mean that you must be very actively involved in your site content and pages load.
Just like with humans, if you are not active, decay quickly follows and it is much harder to bring back to life a decaying mind and body than one that has been active and alive.
With conversions, keywords are your salesman, so don't send them out unprepared.
Stuffing keywords on your pages to improve ROI will never lead to good conversions.
It would be like sending out salesman out in the field wearing a tag that says "Buy from me.
Potatoes..
Idaho Potatoes.
Planting Potatoes.
Mr.
Potato Head...
".
What people want to see is a representation of their keyword search.
If they search for "Idaho potatoes for gardeners", show them a page that represents, as exactly as possible, what they searched for.
If your keywords do not match the search as closely as possible, conversion will greatly suffer.
Additionally, your ads must also be as related to your keywords and landing pages as possible.
To use the same salesman example, sending a GMO potato salesman to sell to an organic minded consumer will be a waste of time and money, and will result in no sales.
Be precise, continually monitor and adjust your ads, keywords and site.
Keep it alive! Is click through rate important? Yes and no! If no one clicks on your ads or your ads are rarely clicked on, then it could be an indication that improvement is needed.
Click through rate is a representation to how many people MAY have seen your ad and decided to click on them.
Some may say that if your click through rate is less than 3% then it is not the best and if it is less than 1% you better reconsider your entire campaign.
We do not necessarily agree with those assessments.
The bottom line is sales and if you have a conversation ratio of 25% or more and sales of at least 10% of that then even if the keyword has a click through rate of.
5%, maybe you can improve it and should just leave it alone.
Ad location on a page search page Get to the top they say.
Only people at the top do best.
We don't agree.
We do feel that you should be on the first page of a search engine pages but ads can sometimes do better halfway on a search page or even towards the bottom than at the top.
Particularly, if you have a great follow-up system and it is easy to reach you by phone, e-mail or other means to get more information.
You may see some ads at the top that get a lot of clicks but many clicks does not always translate to good conversions and profit.
Ultimately, conversion is what matters.
If your conversion ratio and quality is good then you are most likely doing something right.
Web Hosts slow load and their effect on conversion How can web hosts slow load affect conversion? Trust us; it can be a real killer.
You may have the best ads, keywords, web pages that would result in super conversions but you may never know they can.
Why? Simply because your pages are not loading fast enough! Imagine seeing the perfect ad on the web and decide to click on it only to have to wait 15 seconds or more for the page to load.
We don't know about you but we don't have time to wait and our trust for that web site has just spiral down.
An important note: Many web hosts will advertise 99.
9% uptime.
From our experience, we have not seen that slow loads are included in downtime.
We hope that the information in this article will help you have the most profitable experience from your web ads.
As much more can be said on the subject on conversion ratio, we tried to cover the most important.
Always feel free to ask us questions and send us comments.
We wish you success.
