conversion rates and click-through rates
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| conversion rates and click-through rates |
Studies repeatedly show that those adverts nearer the top of the page (so the best ranked) attract the highest CTRs. They get the most clicks. And, the clicks cost the advertisers more.
Looking at the heat map, you can see that getting in the blue box on Google will most likely generate even more clicks on an advert. You might think, the more clicks the better, but is this necessarily the case?
Being in the top position means you will pay more per click. Many clicks at a higher price may use up your budget quickly. Also, many people click on the top advert believing it to be the top organic search result – often without reading the advert text.
Advertisers need to consider what a user does after clicking through to the advertiser’s web site from the search engine. When planning a PPC campaign, it is therefore crucial to set up the goals of the campaign, and make sure that these are being met. You can use your analytics package to set these up. With a goal set up, the advertiser can track how many of the users that click through to the web site follow through to that goal.
This is called a conversion.
Goals can be:
Buying a product
Filling in a form
Downloading a whitepaper
Sending an enquiry
Booking a flight
We know that the CTR of an advert is clicks / impressions %
The conversion rate of an advert is conversions / clicks %
As the advertiser, you also need to know the value of each conversion. You need to know this so that you don’t pay too much for your clicks, and so that you bid to have the best CTR for maximum ROI.
Looking at the heat map, you can see that getting in the blue box on Google will most likely generate even more clicks on an advert. You might think, the more clicks the better, but is this necessarily the case?
Being in the top position means you will pay more per click. Many clicks at a higher price may use up your budget quickly. Also, many people click on the top advert believing it to be the top organic search result – often without reading the advert text.
Advertisers need to consider what a user does after clicking through to the advertiser’s web site from the search engine. When planning a PPC campaign, it is therefore crucial to set up the goals of the campaign, and make sure that these are being met. You can use your analytics package to set these up. With a goal set up, the advertiser can track how many of the users that click through to the web site follow through to that goal.
This is called a conversion.
Goals can be:
Buying a product
Filling in a form
Downloading a whitepaper
Sending an enquiry
Booking a flight
We know that the CTR of an advert is clicks / impressions %
The conversion rate of an advert is conversions / clicks %
As the advertiser, you also need to know the value of each conversion. You need to know this so that you don’t pay too much for your clicks, and so that you bid to have the best CTR for maximum ROI.
The above table shows how you might adjust bidding strategies based on business principles.
Example A: bid on a keyword with phrase match.
Example B: bid on the same keyword with phrase match, but bid for a higher
position. The conversion rate of the web site remains the same, but because of
the higher CPC, the CPA increases, although there are more conversions.
Example A: bid on a keyword with phrase match.
Example B: bid on the same keyword with phrase match, but bid for a higher
position. The conversion rate of the web site remains the same, but because of
the higher CPC, the CPA increases, although there are more conversions.
Example C: bid on the same keyword, but with broad match this time. Because the traffic is less targeted, the conversion rate on the web site is lower. This means that the CPA increases again.
The campaign needs to be run according to business rules. A PPC campaign can aim for maximum conversions, but this is usually at a higher CPA.
The campaign needs to be run according to business rules. A PPC campaign can aim for maximum conversions, but this is usually at a higher CPA.
