buys to clicks ratio

Discussion in 'Google AdWords' started by cav13, Jun 30, 2006.

  1. #1
    Can anyone give me an estimate on what a good advertisement will yield in terms of buys to click-throughs ratio?
     
    cav13, Jun 30, 2006 IP
  2. WebFreedom

    WebFreedom Peon

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    #2
    I think this would really depend on what you're advertising, i.e. how much it costs, your market, etc. But generally speaking, the numbers I've seen bandied about hover between 5% - 10%.

    HTH,
    Sam
     
    WebFreedom, Jul 5, 2006 IP
  3. Dan

    Dan Active Member

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    #3
    To an extent it's up to you.

    If you only bid on your top keywords, and you pre-qualify your clicks by putting the price in the ad, etc. then you can get a high conversion rate (5% or more as Sam says), but you won't get that much traffic, and hence won't make that many sales.

    Alternatively, if you develop a large keyword list, bid on all the different match types, and write your creatives to get the maximum possible CTR, you will get a much lower overall conversion rate (2% or less possibly), but you'll get MUCH more clicks, and therefore probably make more money overall.

    It really all comes down to how big your budget is;

    • Spend $50 on 250 highly targeted visitors & make 13 sales (5%), or,
    • Spend $1000 on 5000 less targeted visitors & make 100 sales (2%)
    If, for example a sale is worth $20 to you, then in the first example, you'd make $210 profit, but in the second, you'd make $1,000.

    So, like I said, it really depends where you set your goals, and hence what proportion of the available traffic you want to target. If you just go for the cream, you'll get a good conversion rate, not spend too much, and not make that much either. Or you go broader, end up spending more, but make more too... It's up to you!

    The one thing that you MUST do in either case is have good visitor / conversion tracking in place on your site, so that you can tell the 'great' keywords, from the 'OK' keywords from the 'not worth bidding on' keywords.

    Good luck,

    Dan
     
    Dan, Jul 5, 2006 IP
    Micromag and WebFreedom like this.
  4. giofed

    giofed Peon

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    #4
    I am in tourism business and I pay 0.50 euros (0,6$) per click I use about 100 keywords and I spend about 400 euros (500$) per month. My overall conversion rate is about 3% it is that normal?

    Thanks for your help
     
    giofed, Jul 7, 2006 IP
  5. Micromag

    Micromag Well-Known Member

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    #5
    Yes, it is.
     
    Micromag, Jul 7, 2006 IP