Simple & Fast Ways to Lower Your Cost/ Conversion Ratio (Part I)
Simple & Fast Ways to Lower Your Cost/Conversion Ratio (Part I)
Every good PPCer knows that the success or failure of a campaign depends on its strategy. You must take several steps to design and build your campaign, analyze it, optimize it and do it all over again. The goal of Every PPCer’s is to significantly lower the cost/conversion ratio on their campaigns.
Spending less amount of money on your campaigns is not an issue; all you have to do is go to the settings tab and simply adjust the daily budget. However, your goal should be to lower your cost while at the same time not losing conversions or, to get more conversions for the identical budget.
There are various ways in which you can achieve this, this post will target the things you can easily do with a click of a mouse.
There are two metrics that have an affect on your cost/conversion ratio. Part I of this post will focus on ways to lower your CPC (without sacrificing the number of conversions). Part II will focus on increasing your conversion rate. Once you understand these and take action you will be able to improve your ratio.
Lowering your Cost-Per-Click (CPC)
The most important thing you must remember to do is to follow the money! Make sure you understand where your money is being spent.
- Make sure to check your campaign settings – when you’re going over your settings, make sure you check your device settings, location and language. Target only the specific markets you need! If you don’t have any landing pages that target mobile devices don’t spend any money on mobile. Not all campaigns are the same as far as mobile. In Legacy campaigns you would have to change the campaign settings in order to exclude mobile devices, whereas in enhanced campaigns you would need to lower the budget percentage that mobile devices receive.
- Always track conversions accurately – in order to track conversions correctly make sure that the conversion codes are placed in the correct place on the correct pages and tracking external conversions (like PayPal etc).
- Check relevant keywords and make good use of the search query reports. The keywords are meant to provide you with a better understanding of your potential customers. How they are searching and what negative keywords you should be adding to prevent getting irrelevant traffic. By reducing the amount of irrelevant traffic and clicks you generate, you don’t use as much money, which can than be reinvested into keywords that increase conversions.
- Manage your placements on the Display Network – add high converting websites to your list of managed placements where you will be able to give them the right attention and bid. Make sure to exclude websites that are are not performing as well in order to make better use of your budget.
- Always aim to improve your quality score – the higher your quality score the better your Ad Rank will be and the less it will cost. The equation that Google uses is as follows: Ad Rank= quality score X minimum bid. Basically, the higher the quality score, the lower the minimum bid. However, experienced PPCer’s know that quality score is given individually to all keywords, ad groups, ads, campaigns, accounts, and MCCs. Ultimately, the quality score Google shows is just the keyword-level quality score.
Most of the time, you won’t be able to solve a quality score issue with just the keyword level quality score available to you in the AdWords interface. There is more to research and it can require some digging on your part to fix the overall issue. I won’t get into all of those issues at the moment; however, there are several easy things you can do for a quick boost:
a. Increase your Click-Through-Rate (CTR):
- Start using Dynamic Keyword Insertions – the fastest method to boosting your Click-Through Rate is to put relevant keywords in your ad copy. The simplest way for Google to determine the ad relevance is to have the keyword included in the ad. The best and safest way to make sure you have keywords in your ad is to use the Dynamic Keyword Insertion.
- Use all ad extensions you can get your hands on.
- Test the different elements of your ads on a regular basis, make sure you review your headline, call to action, the Unique Value Proposition, and display URL. If you are able to know the motivations of your customers, you will have a better understanding of what they are looking for and how to sell to them.
b. Your landing page in the ad should always be relevant to the keywords in your ad-group. If it is a product campaign you are running and your ad is advertising a certain kind of widget, send the user to that specific product page.
Stay tuned on next Monday for Part II, with tips on how increase your conversion rate.