What is the cost per conversion?
When you run Pay per Click advertisement, it becomes easy to measure the clicks your ads have generated, your average CPC, and total spend on any of your given campaign. Conversion tracking enables you to see how many of those clicks lead to conversions. You can divide your total spend by the number of conversions using this information to see how much each new lead costs you.
In Google Ads, you can find it under the “Cost/converted click” column.
Now being in the Cost per conversion domain, following are the three techniques you should know but understand how Google Ad Budget works:
Google Ad Budget:
The budget depends on your industry and the average value of the sale. You can actually determine for yourself whether or not your cost per conversion is reasonable. If the top company sells $20 shoes, a $45.78 Cost per Click signified a serious loss. But if you are an ads contractor and your work is to sign projects of thousands of dollars, then $45 may seem like a negligible amount to pay in order to get a qualified lead.
Pause Your Low Converting Keywords and Review High-Converting Keywords:
If you are new to Pay per Click or an old buff, you should add it in your priority to review your keywords on a regular basis. Although there is a penalty of information about each keyword so you should check first which keywords are generating conversions and which ones are not.
Once you have successfully identified low-converting keywords in your campaign, examine their total number of clicks. If a keyword has only generated 4 conversions than you may consider pausing it. But to begin with, if it only received 10 clicks, that means a 50% conversion rate, which means that the keyword is actually worth keeping in your campaign.
On the contrary, if there is a keyword that has so far only generated 2 conversions out of 2,000 clicks than pausing it will certainly benefit your campaign.
After you have paused the keywords that are not generating reasonable results for your business, there comes some room in the budget to invest in the keywords that are. Using “Search terms” is one of the best ways to do it. This is like using the tab to learn more about how customers are finding your ads and what search terms they are using to get to you.
You will then have a list of the long-tail keywords used by users to get to your ad and converting. Adding these keywords to your campaign can turn into a great opportunity to target leads at an even lower cost.
USE NEGATIVE KEYWORDS
Negative keywords act as a shield to prevent you from targeting users most unlikely to become your customers, and every Pay per Click campaign needs to have it. If you don’t have any negative keywords in your campaigns then the best can be to add a few basic negative keywords as quickly as you can.
Beyond the basics of every campaign, you need to consider what you are and are not offering in order to find the right keywords for a better sale. For instance, if your business is an e-commerce store that sells women’s bags, you may choose to exclude users searching for “men’s shirts” or certain brand names that you do not count in your field.
IMPROVE YOUR LANDING PAGES EXPERIENCE
Your conversion rate varies if your landing page is not optimized properly. It is important for you to know what a visitor sees when they click on your Pay Per Click Ads? If you run an e-commerce site, then your landing page should be a product or a category page. If you run a Business to Business company, then your landing pages must contain information about your services or some contact details.
Each of your ads must direct users to a landing page, relevant to their search query and your ad copy while directing them the next step they should take to qualify themselves as customers. If you are directing them to your homepage or some irrelevant content, they will have no other way of converting than. That means your Pay per Click budget will be wasted, even if users had intentions of making a purchase.
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