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  • Writer's pictureMuthu Kumar Santhanaraja

Conversion Rate Optimization: Optimizing Conversion Rates for PPC

In your marketing goals, it's crucial to make the most of every visitor to your website. That's where Conversion Rate Optimization (CRO) comes in. It's all about making small changes to your ads and website that lead to more people taking action on your site, whether that's making a purchase or signing up for a newsletter. In PPC where every click counts and optimizing your ad is the best way to get the maximum results for your money. In this guide, we'll break down the basics of CRO and show you how to use it to boost your online success.

What is Conversion Rate Optimization?

Conversion Rate Optimization is the process of increasing the percentage of users/visitors who perform a desired action on your website. The desired action could vary depending on your marketing goals such as making a purchase, signing up for a newsletter, or filling out a contact form.

Why focus on CRO? The answer is simple: Efficiency and Profitability. In Google Ads, you pay for every click, but not every click results in a sale or a lead. By optimizing for conversions, you're ensuring that the traffic you're paying for is more likely to generate real value for your business. It’s about making every click count.

Imagine a shop with a hundred visitors daily, but only a handful make a purchase. If the shopkeeper can double the number of purchasers without increasing footfall, the store's profitability skyrockets. That's CRO in a nutshell – getting more results from your existing visitors.

What is the Need for Conversion Rate Optimization?

CRO increases revenue and profitability. By optimizing conversion rates, businesses can extract more value from their existing website traffic without having to increase their advertising or marketing budgets. This means that for every visitor who converts into a customer, the return on investment (ROI) improves.

Secondly, CRO enhances user experience. By analyzing user behavior and preferences, businesses can identify and eliminate barriers that may prevent visitors from taking action on their site. This leads to a smoother, more intuitive browsing experience, which in turn fosters trust and credibility.


How to Calculate Conversion Rate?

To calculate conversion rate divide the number of conversions by the number of visitors then multiply the result by 100.


Conversion Rate (%) = ( Conversions / Visitors) * 100


Lets see it with an example.

Your site gets 1000 visitors from a Google ad campaign. There were 100 people who purchased a product thereby netting you 100 conversions.

So conversion rate(%) = ( 100/1000) * 100 = 10%.

The above example has 10% conversion rate, but in real life conversion rate vary depending on the industry and the type of conversion goal.


Conversion Rate Industry Benchmarks:

Below you can find the conversion rate range for various industry in the ecommerce space.

Industry

Conversion Rate Range (%)

Agriculture

0.62 – 1.41

Arts and Crafts

3.84 – 4.07

Baby and Child

0.87 – 1.43

Cars and Motorcycling

0.65 – 1.35

Electrical and Commercial Equipment

1.31 – 2.49

Fashion, Clothing, and Accessories

1.01 – 2.20

Food and Drink

1.00 – 2.01

Health and Wellbeing

1.87 – 4.20

Home Accessories and Giftware

1.55 – 2.34

Kitchen and Home Appliances

1.72 – 3.00

Pet Care

2.20 – 2.53

Software (Saas, IT & Managed Services)

1.1 - 1.5

Sports and Recreation

1.18 – 1.62

These conversion rates are not set in stone, industry trends, global trends, and lot of various factor can influence conversion rate. Even the type of device used by the user can affect conversion rate. Fun fact: during the pandemic the average conversion rate was inflated to 5% in many industry due to a high surge in online traffic. What defines as your conversion can also affect your conversion rate.


Conversion Rate Optimization for Google Ads: Strategies and Tips

  • Choose Relevant Keywords: The foundation of any successful Google Ads campaign is selecting the right keywords. Ensure that your keywords align with the intent of your target audience. Use tools like Google's Keyword Planner to find high-converting, relevant keywords for your products or services.

  • Craft Compelling Ad Copy: Your ad copy should be persuasive and directly related to your chosen keywords. Highlight the unique selling points of your offering, and include a clear Call-to-Action (CTA). Experiment with various ad copy variations to discover what resonates best with your audience.

  • Utilize Ad Extensions: Google offers a variety of ad extensions, such as site link extensions, callout extensions, and structured snippets. Use these extensions to provide additional information about your business or products. They can make your ads more informative and appealing, potentially increasing click-through rates.

  • Create Dedicated Landing Pages: Sending users to a generic homepage can be a conversion killer. Instead, create dedicated landing pages that match the messaging and intent of your ads. Ensure that these pages load quickly, are mobile-responsive, and feature clear and concise information.

  • Implement A/B Testing: Never stop testing. Run A/B tests on different ad variations, landing pages, and CTAs to identify what converts best. Small tweaks can lead to significant improvements in conversion rates over time.

image depicting A/B testing where option B has better conversion than option A
A/B Testing
  • Focus on Quality Score: Google's Quality Score is a crucial metric that directly impacts ad performance. Aim to improve your Quality Score by maintaining ad relevance, using high-quality landing pages, and targeting the most relevant keywords. Higher Quality Scores can lead to lower costs per click and better ad placements.

  • Optimize Ad Scheduling: Analyze when your target audience is most active, and schedule your ads accordingly. Avoid wasting budget during times when your audience is unlikely to convert. A restaurant which closes at 11 p.m should not be running ads at midnight.

  • Implement Remarketing: Don't forget about users who didn't convert on their first visit. Set up remarketing campaigns to re-engage these potential customers with tailored messaging and offers. You can check out our short video on remarketing below.

  • Monitor and Adjust: Regularly review your campaign data to identify what's working and what isn't. Adjust your strategy and budget based on the performance of keywords, ad groups, and ad variations.

  • Emphasize Trust Signals: Include trust-building elements on your landing pages, such as customer reviews, ratings, and security badges. Trust signals can significantly impact conversion rates by reassuring potential customers.

  • Landing Page Speed: Ensure your landing pages load quickly to prevent users from bouncing due to slow loading times. You can use Google page speed insights to find your page speed.

  • Monitor and Adjust: Regularly review your campaign data to identify what's working and what isn't. Adjust your strategy and budget based on the performance of keywords, ad groups, and ad variations.

  • Optimize Your Conversion: To finish a conversion make sure the user is able to do it in as many minimum steps as possible. You do not want a user to abandon a potential conversion just because it took time to finish a purchase or submit a form.

Challenges and Trade-offs in Optimization

Balancing user experience with marketing objectives is a fine line. Over-emphasizing promotional content can detract from the UX, while a heavy focus on design might dilute the marketing message. Moreover, focusing on short-term gains can sometimes overshadow the need for a sustainable, long-term strategy. These trade-offs require careful consideration and a strategic approach to ensure the best outcomes.


The bottom-line:

Conversion Rate Optimization is not a one-off effort but an ongoing process that requires continuous monitoring, testing, and refinement. In the long run, a well-executed CRO strategy can lead to significant improvements in conversions and achieving your marketing goals. The process of CRO should be seen as a marathon and not as a short sprint.


We have used these techniques at StatPPC in improving our clients conversion rates! Let us run the conversion rate optimization marathon for you while you can concentrate of your core business. Schedule a free consultation call today.















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