1. When you hear people talk about conversion rates, like 2-3%...are they talking about the percentage of users who click on the PPC ad, go to your landing page, and subsequently click-through to the advertiser/company site and take an action? Or does the percentage mean people who have already clicked through to the advertiser/company site and take an action? 2. What is considered a good percentage of people who click-through from your landing page to the site where they will buy?
Hi Shadowplay, I'll try answer your questions: 1: Conversions is the actual amount of people that "buy" the product. So, 2-3% will be 2 or 3 visitors per every 100 to your website/landing page that will actually purchase what you're promoting. 2: That is very difficult to answer. It depends a lot on your landing page. If you can 'convince' the visitor that this is the product they need then they are already pre-sold by the the time they click through to the vendor's site. If you're doing a good job on 'preselling', then you'll get more visitors clicking through. TIP: Remember, visitors don't want to be sold to. Be careful not to make your page 'salesy'. 2-3% conversion rate is actually pretty good. Some markets are lower, others are higher. What makes or breaks you is the ability to keep your costs down. *Earn more than you spend* Regards, Mark Acutt (Cash Bootstrap Method)
So let me see if I have this straight... To keep things simple, let's say the click-through on the PPC ad is say, 1% to your landing page. And the conversion rate from there is only 1% for an action/sale. Therefore, it would take 10,000 impressions of the PPC ad to equal 1 action/sale. Does this sound right?
I'll try to answer this question. Yes. If 1 out of every one impression gets you a Click-Thru, then that would be a 1% click-through rate. If after that only 1% of the click-throughers buy what you're selling, then you'd go 10,000 impressions on average before you make a sale. The Click-through rate is important, yes, but what is more important to me is the conversion after the click. If I have to go 1,000,000 ad impressions to get one sale, I'm perfectly fine with that as long as I'm not paying more than I'm earning. For instance, if I spent an avg of $0.20 a click on 100 clicks, and I only had a 1% conversion rate, and that one conversion was on a product that earns me a $30 CPA, I made $10 profit. 50% ROI, to me, is super sexy. Even if it did take me a million impressions to get there. EDIT: However, a CTR of only getting 100 clicks from 1,000,000 impressions would probably put me on Google's blacklist, or something to that effect. So, I wouldn't advise following my advice.
If you're selling a niche product or service then your conversion should be around 5% to 10%, not 1%.. thus the importance of focusing on a niche rather than trying to compete with everyone else...