Are Conversion rates constant for you in adwords?

Discussion in 'Google AdWords' started by thebigsteveman, Apr 17, 2008.

  1. #1
    Hi guys,

    I am looking for feedback on conversion rates. What I am trying to figure out, is if you have a site that converts at 3 percent overall, would you find a difference in conversion if you changed your ad positions in adwords?

    In otherwords if I push up the bids, I know I will push up the ad positions, and most likely the click through rate as well. But do you find that you get more conversions as a percentage if you crank the traffic? or is it pretty much constant whether you get 200 visitors or 2 million?

    Let me know what you think.

    Steve
     
    thebigsteveman, Apr 17, 2008 IP
  2. robertpriolo

    robertpriolo Peon

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    #2
    your landing page will usually convert the same regardless of position and volume, although you might see a slight increase in conversion rate if you are only looking for leads and not end product purchases. People are willing to give out email faster than a CC number. Secondly many people are lazy and only look through the first few results and then make a decision.
     
    robertpriolo, Apr 17, 2008 IP
  3. thebigsteveman

    thebigsteveman Active Member

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    #3
    Right, that is kind of what I was thinking. If this holds true, then you could actually calculate out position, probable CTR, probable clicks and click prices and actually use excel or something to find the "sweet spot" of profitability for a lot of pay per click stuff.
     
    thebigsteveman, Apr 17, 2008 IP
  4. phjohnso

    phjohnso Well-Known Member

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    #4
    keep in mind that the probable doesn't put money in your bank account.
     
    phjohnso, Apr 17, 2008 IP
  5. Marcel the Paladin

    Marcel the Paladin Peon

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    #5
    Steve,

    Robert is spot on. Conversion rates are a function of your landing page/product funnel. They're also a function of how well your keywords/ads conveys the message on your landing page. To alter conversion rates, I recommend playing with Google's Website Optimizer on your landing pages.

    Changing your ad dimensions (like position) will alter your click-through-rate (CTR). If you want to improve your CTR, see what other advertisers are doing for your keywords ad segment by using free tools like: SpyFu, KeywordTracker, iSpionage, etc.

    If you're campaign is like mine, you'll find that sprucing it up will yield better revenue that increasing the traffic.

    P.S. In terms of ad position there's a dead-zone in spots #5-8, where the CTR is AWFUL!!!
     
    Marcel the Paladin, Apr 17, 2008 IP
  6. thebigsteveman

    thebigsteveman Active Member

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    #6
    Right, I have plenty of experience with CTR and click prices, which both go up the higher you are on the page. But it seems to me that the same way adwords is kind of a multivariate equation of ctr * click price * relevance if you just took it a little further, added conversion rate, cost, and net profit, you could find a few sweet spots.

    Some parts of the equation are variables and some are constants though. Like CTR and CPC both go up by a certain factor, which makes your budget go up exponentially. But if the conversion rate is more or less a constant, it seems that you could pretty much forecast a lot of stuff. So that is why I was wondering if people had experiences like taking their ads from position 2 to position 6 and getting less traffic, for less cost per click, but having the conversion rates stay more or less the same.
     
    thebigsteveman, Apr 17, 2008 IP
  7. robertpriolo

    robertpriolo Peon

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    #7
    Man...

    I like the way you think

    Finally, someone with some smarts around here... I just hope its not short lived.
     
    robertpriolo, Apr 17, 2008 IP