PPC Conversion rate measures the number of people that take a specific action on your site relative to the total number of visitors. Knowing your conversion rates helps you determine how successful your PPC campaigns are on search engines and your social media and digital marketing efforts.
PPC stands for pay-per-click, a model of internet marketing in which advertisers pay a fee each time one of their ads is clicked. Once you’ve clicked an ad and arrived on the advertiser’s website, that click is referred to as a conversion.
Conversion rates are critical business metrics because they provide the most unambiguous indication of how customers respond to your PPC ad campaigns, the primary way to generate traffic to your site.
As you can probably guess, PPC campaign management is complex, and without conversion rate metrics, it’s difficult to know whether your ad groups are working for you or not.
Your conversion rate is closely related to your Click-Through Rate (CTR), which is the percentage of times your ad is clicked compared to the number of times viewed on search engines. CTRs are typically low. However, CTR doesn’t indicate success or failure; conversion rate does.
Getting a high-quality score for your pay-per-click advertising can be challenging if your search ad’s conversion rate is low. Conversion rates are usually under 10 per cent, meaning that, for every 100 visitors to your site, less than ten will take the action you want them to (like making a purchase or filling out a form).
What is the Average PPC Conversion Rate?
Conversion rates vary widely depending on many variables. Some advertisers have conversion rates below 0.5 per cent, while others are above 8 per cent. While there is no ideal PPC conversion rate, PPC ads with low conversion rates often have low CTRs and vice versa.
A good number conversion rate to aim for is 10 per cent or more (Popupsmart, 2022).
The Average PPC Conversion Rate Optimization for Google Shopping Ads
Google Shopping Ads are a type of online advertising that allows retailers to showcase their products in search queries. When a user searches for a particular product on Google, they may see Shopping ads appear at the top of the search results.
These ads include pictures of the product, as well as information about prices and availability. Shopping ads can be an effective way for retailers to reach potential customers who are already interested in their products. In addition, because these ads are targeted to users who are already searching for similar products, they may be more likely to result in a sale than other types of online advertising.
Now, the average CTR of Google Shopping Ads is .86 per cent, while the average CPC is $0.66, and the average CRO is 1.91 per cent.
When considering a Google Shopping campaign, it’s crucial to understand user behaviour as this can impact the decision-making process.
Google Ads and Conversion Rate
If you are running Google Ads, your conversion rate is one of the most important metrics, along with CTR.
Achieving a high conversion rate is the goal of every marketer, as it indicates that people are not only clicking on your Google Ads but also taking the desired action.
There are a number of factors that influence conversion rates, such as ad quality, relevance, and targeting.
How to Increase your PPC Conversion Rate?
There are numerous ways how you can increase PPC conversion rates, such as:
1. Always use PPC landing pages
Don’t send people to your home page. PPC landing pages should be specific, and you want to use the same offer on your ad and landing page.
By sending visitors directly to a landing page created just for the PPC campaign that brought them there, you can improve your conversion rate because the landing page is specific to what the customer needs, increasing their chances of converting. Landing page quality is more important than PPC bid price.
The landing page will help you improve conversion rate and PPC CTR by giving your traffic a clear, single purpose.
As a bonus, Google Adwords rewards companies with dedicated PPC landing pages with better PPC ad rank.
2. Choose Relevant Keywords for your Paid Search Ads
Choosing the right targeted keywords for your PPC marketing has the same concept as targeting the right keywords for search engine optimisation. As part of your keyword research, remember to add negative keywords for your search ad. Negative keywords are words or phrases you don’t want your PPC campaign to show.
Choosing the highly relevant keywords in your paid search ads will help you increase your conversion rate by delivering your PPC traffic to landing pages relevant to the keyword they searched for. Also, make sure to use different keyword variations to cover as many bases as possible.
Long-tail keywords and keywords with low PPC competition tend to have high PPC conversion rates and will show up high on the search engine results pages. So, take note of all these when doing your keyword research.
3. Always Use Paid Search Marketing Clear Call to Action
If you want your PPC visitors to take a specific action, such as filling out a PPC form or making a PPC purchase, include PPC call-to-action in the text ads and on the landing page.
In search engine marketing, call-to-actions are valuable tools because they tell visitors what you want them to do next.
Calls-to-action can be a button, headline, PPC ad copy, or text ads. A PPC call-to-action is always to direct PPC traffic towards a specific goal.
The more information you provide your visitors with your CTA, the more likely PPC visitors will convert. Make sure to keep in mind CTA’s when you create ads.
4. Use the Appropriate Audience Targeting When Creating PPC ads
Suppose your PPC marketing strategies aren’t performing the way you expect them to. In that case, you’re targeting the wrong audience. You need to be targeting the right audience because PPC campaigns depend on the volume and quality of traffic. PPC ads need the traffic to convert, so you can’t waste PPC clicks on people who aren’t customers.
Targeting the correct Google ads keywords can help determine PPC conversion rates. PPC keywords are words or phrases used in ads that help visitors decide whether your paid ads are relevant to their search query.
For example, let’s say you’re selling luxury items online, and you want buyers to see your shopping ads in the search results when they search for “Best luxury goods in Australia”.
Visitors searching for keywords like “Luxury Goods” are more likely to be buyers because they’re looking for information your site can provide.
Another aspect is that targeting the correct audience is one best practice to improve conversion rate. If you are sending traffic to your site but you aren’t getting conversions, maybe the people who are clicking on your ads aren’t actually your target.
Here are some of the demographics that you need to look out for in your PPC marketing:
● Search behaviour
● Geographic location
● Language
● Income level
● Parental Status
● Nationality
● Education Level
● Work/Career
PPC campaigns are only successful if visitors can find what they want. Your ad groups must be sent out to the right people so that the conversion rate will be higher, CTRs will increase, and the campaign Cost-Per-Acquisition (CPA) be lower. Plus, there will be a higher chance for your PPC ads to rank higher on the search engine results page.
5. Segment Your Audience to Target your Google Ads on Search Engines
Another great tip is to segment your audiences into groups. PPC campaigns are a great way to learn about your customers, which keywords they’re using and from what locations. Segmenting allows you to test different ad groups against each other and search ads that target specific audiences within your overall Google AdWords campaign.
About 80 per cent of traffic comes from personalised experience. PPC campaigns and landing pages should be targeted toward the right people. Account managers can help you with audience targeting by using tools like Google Ads editor, Wordstream advisor, Unbounce, etc.
6. Perform Frequent A/B Testing on all Ad Groups
A/B testing is one of the best digital marketing strategies to boost conversion rates. It allows ad groups to test landing pages against each other and determine which works the best in search engine results.
Pay per Click Advertising accounts should also try ad copy and bids to improve conversion rate. Each campaign is unique and different, and only constant testing and account management can generate a better ad rank on the search engine results page.
Experimenting with PPC ads against landing pages, keywords, and demographics is best to improve PPC conversion rates.
7. Utilise Remarketing in PPC Campaigns
Remarketing, also called retargeting, is a common and popular form of paid search marketing that enables you to retarget the audiences that did not convert the first time they visited. This tactic can be effective in targeting users that we’re too distracted to convert the first time.
Because you target past visitors, you can remarket to them with PPC ads and landing pages that follow up the next time they visit your site.
Remarketing campaigns are a great way to improve your conversion rate and CTR by targeting previous visitors again.
What is PPC in Search Engine Marketing (SEM)?
Major search engines provide advertisers with statistics about keyword relevance search activities before clicking on video ads or text ads. This information can help you adjust your advertising spending to target the most cost-effective keywords for your business.
The leading search engine, Google, offers Google Adwords to advertisers to buy online advertising. The basic idea is that these ads appear as keywords or sponsored links in search result pages where the user can click on the ad and go directly to your website.
When an ad appears on a search results page, the advertiser pays when the ad is clicked on. And, if a user does not click on an ad, no charge is made to the advertiser’s account.
The search engine charges a fee for each visitor who clicks on text advertisements. The price is called an ad-word or cost-per-click, and advertisers pay every time a visitor clicks on text ads. The fee for an ad word is determined by both the search engine and the advertiser but typically ranges from one to three cents each time someone clicks on their ad.
Overall, PPC is integral to search engine marketing because it helps direct traffic to your website. While SEO can be highly beneficial, it takes time for Google algorithm changes to improve rankings. But with PPC, advertisers pay every time a visitor clicks on their text ads, potentially increasing the number of conversions and sales.
The Benefits of PPC Advertising
Here’s a quick refresher as to why PPC advertising is an excellent choice for your business. Its benefits are listed below:
It Can Contribute To Your Business Goals
As the world of business becomes increasingly competitive, it is important to ensure that your ad spend is spent in a way that will contribute to your overall goals.
Pay-per-click (PPC) advertising is one of the most effective ways to reach potential customers and generate leads. By bidding on relevant keywords, you can ensure that your ad appears in front of users actively searching for products or services like yours.
In addition, PPC ads can be targeted to specific demographics, locations, and even devices, allowing you to tailor your campaigns for maximum effect.
As you can see, PPC advertising can be a powerful tool for achieving your business goals. Investing in a well-planned and executed PPC campaign can help you to reach new customers, increase leads, and boost sales.
Only Pay When Someone Clicks on Your Ad
PPC is an online advertising model in which businesses only pay when someone clicks on their ad. This makes PPC a very effective way to reach potential customers, as businesses only pay when they are guaranteed exposure to people who are interested in what they have to offer. Therefore, the ad spend is controlled.
Several platforms provide PPC advertising, such as Google AdWords, Bing Ads, and Facebook Ads.
Gain More Brand Recognition
A successful ad campaign reaches the right people with the right message at the right time. In the past, that meant spending money on advertising campaigns designed to get as many people as possible. However, with the advent of digital marketing, businesses can now be much more strategic about allocating their marketing budgets.
One of the most effective ways to reach potential customers is through PPC advertising. Through a PPC ad campaign, businesses can target individuals who are already interested in their products or services. As a result, PPC can be an extremely effective way to gain brand recognition and drive new sales.
Reach the Right People
PPC advertising can be an effective way to reach potential customers and grow your business. With PPC, you can target potential customers based on their location, interests, and even the specific keywords they’ve used to search for products or services like yours.
This ensures that your ads are seen by people who are actually interested in what you have to offer, which can lead to more clicks and conversions. Additionally, PPC allows you to track your results to see how effective your campaigns are and make necessary adjustments to your ad copy. With the right approach, PPC can be a powerful tool for driving traffic to your site and growing your business.
Key Takeaways
Achieving a high conversion rate for your search ads can significantly affect ad rank. The way to do this is to be aware of the following PPC best practices:
- PPC campaigns should be targeted toward the right audience
- PPC accounts should be segmented to test ad groups against each other
- PPC ads and landing pages should be tested frequently for improvement
- PPC remarketing is a great way to retarget users that did not convert the first time around.
Now you know what conversion rate is, how it affects PPC ad rank, and the best practices that can improve your PPC conversion rate, keep working towards reaching a high PPC ad rank and taking strides in successful PPC ads. Doing so will help you rank higher on organic search results and increase your site’s overall quality score.
Investing in PPC management services will go a long way to help you achieve a high or even PPC conversion rate. Getting the average conversion rate can go a long way to help you rank higher on Google search results and other search engines. Evolving Digital, the digital agency for you that can deliver the best PPC strategy and PPC services for higher online revenue.
FAQs
What is the difference between paid advertising and search advertising?
Paid advertising is any type of advertisement where the advertiser pays to have their ad shown. This can include traditional forms of advertising like print, television, or radio ads, as well as digital forms of advertising like paid search ads, display ads, or sponsored posts on social media.
Search advertising is a specific type of paid advertising that allows advertisers to show their ads in the search results of a search engine like Google. Search ads are usually text-based and appear above or below the organic search results page.
What is the quality score in PPC?
Quality Score is a metric used by Google Ads to measure how relevant your ad, keyword, and landing page are to a user’s search query. It means your ad is relevant and useful to the user, and therefore you’ll pay less per click. This score is based on a number of factors, including the CTR of your ad, the relevance of your keywords to your ad group, and the quality of your landing page.
Paid advertising can be an effective way to reach new customers, but it can also be expensive. Search advertising can be more cost-effective since you only pay when someone clicks on your ad. However, it can be more challenging to get your ad seen in the search results if you’re not bidding on competitive keywords. Ultimately, the best option for your business will depend on your budget and marketing goals.
What is the best ad placement for rate optimisation?
PPC advertising can be a great way to generate leads and sales for your business. But for it to be effective, you need to make sure that ad placements are in the right location. The best place to put your ads is on websites relevant to your product or service. This way, you can be sure that the people who see your ad are interested in what you have to offer. In addition, you should also make sure that your ads are placed in locations where they will be seen by as many people as possible. The more people see your ad, the more likely you are to generate leads and sales. By carefully choosing the placement of your ads, you can maximise your conversion rate and get the most out of your PPC campaign.
What is Average Order Value (AOV)?
In pay-per-click (PPC) advertising, average order value (AOV) is the average amount of money a customer spends on an order when they click on an ad. AOV is a key metric for measuring the success of a PPC campaign, as it can help to determine how much revenue is generated from each ad click. A high AOV indicates that customers are spending more on each order, which can increase profits. Conversely, a low AOV may indicate that customers are not finding the products they are looking for or that the prices are too high. Either way, AOV is an important metric to keep track of to optimise your PPC campaigns.
How can a PPC agency help me?
A PPC agency can help boost your PPC conversions by helping you create and manage effective campaigns. Through effective PPC management, they can provide you with valuable insights into your target market, allowing you to create ad copy and landing pages that are designed to attract and convert potential customers.
In addition, a good PPC agency will have a robust tracking and reporting system in place for your paid campaigns, so you can see how your campaigns are performing and make necessary adjustments to ensure you are getting the most out of your PPC spend.
They will ensure that the marketing strategy will reach your target audience on search results pages. Additionally, PPC management will also deal with social media sites, web copy, search queries, and more. They will take care of your digital advertising, and all you need to do is provide them with the necessary information.
By working with a reputable and experienced PPC agency, you can maximise your chances of success with PPC and ensure that you can generate more leads and sales from your online marketing efforts.
What can I expect from PPC services?
There are a number of PPC services that can be beneficial for your business. Perhaps the most important service is keyword research. To be successful with PPC campaigns, you need to choose the right keywords. This can be a difficult and time-consuming task, but it is essential to ensure that your ads are seen by the right people.
Another important service is ad creation. Creating effective ads is both an art and a science, and it takes a lot of practice to get it right. A good PPC company can help you create ads that are both eye-catching and relevant to your target audience.
Finally, you will also need to monitor your campaign closely to ensure that it is performing as expected. Good digital marketing agencies will provide you with detailed reports that will help you track your progress and make necessary adjustments. By availing of these services, you can greatly increase your chances of success with PPC campaigns.
How to calculate PPC CRO
PPC conversion rate is the percentage of clicks on your ad that convert to leads or sales. To calculate your PPC conversion rate, simply take the number of conversions and divide it by the total number of clicks. For example, if you had ten sales from 100 clicks, your conversion rate should sit around 10 per cent.
While a high conversion rate is generally a good thing, it’s important to keep in mind that there are many factors that can influence your conversion rate. For example, if you’re selling a high-priced item, you may see a lower conversion rate than if you were selling a lower-priced item. Additionally, seasonality can also play a role in your conversion rates.
Is Google Ads PPC?
Pay-per-click (PPC) advertising is an effective way to drive traffic to your website. With PPC, you can target potential customers who are searching for the products or services that you offer. When someone clicks on your ad, they are taken to your website, and you only pay when someone actually clicks on your ad. Google Ads is a PPC advertising platform that allows you to place ads on Google.com and millions of other websites across the Google Display Network.
With Google Ads, you can reach a large audience with your ads, and you only pay when people click on your ad. As a result, Google Ads can be a cost-effective way to drive traffic to your website.
How does landing page quality impact results?
The quality of your landing page can have a significant impact on the success of your PPC campaigns. A well-designed and optimised landing page can help to increase your conversion rate, while a poorly designed landing page can result in a high bounce rate and low conversion rate.
Read Landing Page Design Tips to Drive Conversions
What are ad extensions?
Ad extensions are additional features that you can add to your ads to make them more informative and eye-catching. Extensions can include things like product images, pricing information, customer reviews, and contact details.
Adding extensions to your ads can help to improve your click-through rate, as they provide potential customers with more information about your products or services. Additionally, extensions can also help to improve your quality score, which is a measure of how relevant and useful your ads are.
