A key concept to know relating to an efficient PPC campaign is that it is never just about clickthrough rate (CTR), average cost per click (CPC), ranking of your ads or amount of impressions. A paid advertising campaign could be judged to be a success in case the cost per action (e.g. to buy an item or get a signup) is less than the marketing cost.The most vital variable determining this is the rate at which you convert clicks into customers.
Your conversion rate is defined as the total of completed actions you deemed valuable as a percentage of traffic bought. The rate at which your site converts visitors is not only a function of a profitable AdWords campaign but is highly reliant upon the website and sales system on a site.
Landing pages could be tested against one another by utilizing Adwords no cost Analytics Content Experiments tool. In theory the more you make a person click to reach the desired action the lower will your conversion rate will be.
In terms of a quote there is typically only a need for a single click in order to get a conversion but when it come to a purchase via a cart, for example, there are numerous clicks between the arrival at the cart and the eventual checkout. Each component of this progression will lead to a proportion of the original clicks being lost. For these reasons a better rate of conversion could be anticipated for a sales quote compared to a sale. This is just one of the reasons why collecting e-mail addresses for future sales prospects is an important element of an efficient PPC campaign.
Vital Information About Search Generally
It is calculated roughly by Google that only five percent of all online traffic come from search. The remainder from sites like Amazon, MySpace and other social media sites, news sites and similar sites which are reached by bookmark or by typing the URL into the internet browser.This modest percentage nevertheless causes about 700 million searches being made each day. Of these type of searches something like 1/4th are new searches.
Whenever a search is made on Google it is estimated that 80% of the searchers click the SEO results. This leaves only a total of twenty percent who could possibly click the paid ads…many searchers will actually not click whatsoever and will likely do a 2nd search or hit the back button. If only twenty percent of people click a PPC ad and if Google shows as many as 11 PPC ads per site, then typically each paid ad will get no more than 2% of the clicks.
However in practice the amount of clicks for ads ranked in the premium positions will most likely be something like 4 or 5 times the amount of clicks for a pay per click ad in positions 8 to 11. While nobody really knows the average CTR for all searches it is regarded that an average of 1 % is reasonable.The challenge of a well organized and well managed paid advertising campaign is to dramatically improve upon this average.
- is the founder of Profit Rocket, a Cape Town search marketing agency providing pay per click management. Alain has been involved in the search industry for the past 6+ years.To learn more about -, visit us.