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Understanding and Optimizing Your PPC Conversion Rates

By Mark Allan Cruz on Dec 22, 2021

As you probably already know, Pay Per Click (PPC) advertising is when you only pay for a digital ad when a prospect clicks on your ad. PPC is a great way to get traffic to your site without paying for those who only view your ad. But if your goal is to make sales not just generate traffic, that’s not enough.

Once a potential customer is at your site, it’s up to you to close the sale. Typically, the amount you pay per click is very low. Your PPC might be $2. If a customer spends $100 on your site, that price was well worth it.

But what if you are driving a lot of traffic to your site through PPC ads, but they just aren’t buying?

You need to know your PPC conversion rate, the rate at which people who click on your ads are taking the action you desire on your site, which of course in most cases is buying.

Even if you hire a PPC agency, you will still want to keep reading about how to optimize your PPC conversion rate.

How to Measure PPC Conversion Rates

A PPC conversion rate communicates the success of your advertising dollars. The formula for this is as follows:

(total attributed conversions ÷ total number of clicks or visits) x 100

Example: In the month of October your Google ads resulted in 1,000 clicks. From those that visited your website, 100 people placed an order. Your PPC conversion rate is 10%

What Is a Good PPC Conversion Rate?

Before you run an advertising campaign, it is important to define success. How else do you know whether your advertising dollars were worth it? Defining a good PPC conversion rate is a critical step in assessing the success of your marketing campaign.

The average PPC conversion rate on Google is 3.17% for search across all industries. That being said, the industry averages vary drastically — some industries averaging as high as 9% and others as low as 2%. How do you know what a successful conversion rate is for you? And what can you do to improve it?

Tip #1: Know Where You Stand (and Where You Want to Go)

The first step to optimizing your PPC conversion rate is to know where you are now and where you want to be. Review the industry standards to find the average conversion rate for your business. Review where your conversion rate is now. Is it lower than your industry’s average? If so, by how much?

Next, consider where you want to be. What does success look like for you? Is it to meet or exceed the industry average? If there is a large gap between where you are now and where you want to be, consider defining what a small step of improvement would be. Wherever you set your goal, make sure it is attainable and realistic.

Tip #2: Improve Your Ad Copy

The most important thing to remember when using PPC advertising is this: you are paying for visits to your site. Therefore, there are two main factors that influence the effectiveness of your ads. The first is writing relevant and exceptional ad copy, since this is what will get their attention and convince them to click in the first place. The second is to make your website so engaging and persuasive, they will make a purchase instead of leaving.

When you use PPC advertising on search engines, the copy of your ad is everything. When you make a Google search, there are no fancy fonts, colors or pictures to rely on like in other advertising. PPC ads are not about design. They are about words.

Your copy should be clear and concise. Remember, your search result shows them who you are and if you can answer their question. You have less than 100 words and just a few seconds to prove yourself worthy of being clicked on.

What is your hook? What incentives do they have to choose you? Highlight what makes you special or a deal they should take advantage of. Remember the purpose of the ad copy is not to get them to buy right then. You just need them to visit your website. Take it one step at a time.

Tip #3: Design Stellar Landing Pages

Once a customer has clicked on your website, they have left the search engine and entered your house. It’s up to you to introduce yourself, answer their questions, and prove that you are the valuable solution to their problems. In other words, your landing page is everything at this point in the journey.

If your website is slow or not engaging enough, a consumer will leave. If your website doesn’t answer the question they searched for, they will leave. Even if your website is engaging and answers their questions but does not call them to make a purchase, they may stay a little while. But they will not buy, and in marketing terms your campaign has failed. (With one exception — you may have them in a funnel for future ad targeting.)

Design stellar landing pages that engage with your ideal customers. Consider running an A/B test for your landing pages to find the best design. Answer their questions, provide value, and walk them through why you are the product or service they have been looking for. Most importantly, have a clear call to action. Ask for the sale. In other words, once you have them, don’t let them go. This is a lot of moving parts, but a PPC agency can help.

Tip #4: Find Your Ideal Audience

If you have worked on your landing pages and ad copy but still aren’t reaching your goal for your PPC conversion rate, you may need to work harder on your audience segmentation.

Unfortunately, defining your target audience is easier said than done. You will also need to go through some trial and error to find the perfect keywords to use. Consider doing some market research to study what your competitors are doing. Once you find the right keywords for your target audience, plan to review and revise them regularly as needed.

Going Forward

PPC advertising both in search engine results and display ads can be a profitable way to market your business. But once prospects come to your site, it’s up to you to prove you are capable of solving their problem. This begins with clear and concise ad copy to grab their attention from the beginning. Once a prospect clicks, they are on your website.  Closing the sale comes down to an engaging landing page with a clear CTA.

With these improvements, your PPC conversion rate is sure to meet or exceed your industry’s standard. And remember. If you are considering a PPC agency, Umbrella Local is always standing by to help with Google advertising services and all your other digital advertising.






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