Hello all, If my keyword is giving me conversions. But at the same time its consuming high cost. What ways will you suggest to reduce the cost per conversion? Please advice.
1. if its broad match keyword, monitor the referrer in your server logs and start exact matching all the search variations until you find the real converting keyword/s and position and bid appropriately 2. If its exact match, lower the CPC 0.01 cent below your current avg CPC and see if conversion ratio changes and see what the new CPA is. 3. Develop a better / higher converting landing page 4. Prequalify traffic in the text ad so only searchers ready to buy / signup will click your ad 5. monitor time of day the conversion occur and exclude non performing times 6. break out keywords to different geo regions and see which regions convert and eliminate the rest. If you do all of the above your CPA should decrease so much that your ROI is INSANE
On the other hand, sometimes you have to just get rid of a keyword that is converting but not within your target ROI goal. It's hard to do, but discipline leads to a rock solid account.
LOL... throw away a converting keyword every converting keyword is worth keeping, it just requires smart optimization tactics. With this mentality you will never drive volume and always remain average or under average at best.
These are all great advices. There is one more simple one I would add- Lower the position of the ad, so that you are getting less traffic but its cheaper for that keyword. You can do that first, while you then do all the other steps that robert suggested, and after you are done with that you should be in good shape.