The Connection Of Ppc Advertising To Conversion Rate

A Pay Per Click (PPC) marketing campaign's victory is greatly directed to the website's conversion rate

. This means that the more paid search bid prices increase, the more critical a website's conversion rate is to get a high return of investment (ROI).

You must know the trials that come with low conversion rates, so as to understand how conversion rate is connected to the success of PPC marketing. These challenges are: (1) if you have a PPC search advertising campaign and the keyword price increases, your site's current conversion rate may not support the higher bids needed to stay on top, (2) if you don't have a PPC campaign but when you decided to join in the game, keyword bid prices have already continued to rise, and (3) if you're caught in any of these situations, you would need the knowledge and expertise to increase your conversion rates effectively.

Let's take a look at a normal online retailer's conversion rate and its relation to the Pay Per Click marketing bids. Brand Y vends ladies' bags at $300 each and has a 10% profit margin wherein he brings in $30 per bag. Brand Y sells 20 bags for $6,000 and brings in $600 in income from those sales for each 1,000 visitors. By dividing $600 profit by the 1,000 visitors, the break even bid is $0.60, making Brand Y's typical cost per click (CPC) on Yahoo or AdWords at $0.60 or lower.

Preferably, Brand Y's total Pay Per Click marketing campaign must be played below the $0.60 bid ceiling. The higher the bid gets the fewer audience the retailer can touch. However, the reality is many targeted keywords have bid prices that are more than a dollar. So, in the above scenario, Brand Y is already out of the game before he even got the chance to launch his campaign.

This example is just based on a 2% conversion rate. If he increases his conversion rate to 4% or higher, he could increase his bids, and at 4% conversion rate, he can compete with a $1.20 bid for the top spots. At 8 to 10 percent conversion rate, Brand Y's PPC internet marketing campaign could be very profitable. In the cutthroat world of PPC marketing, as you can see, increasing the website's conversion rate is the secret to victory.

You could be in serious risk since bid prices are escalating rapidly if you haven't began your Pay Per Click advertising campaign. By the time you would have began to get to understand more about paid search advertising, it will be too expensive to learn through trial and error. What's worse is if your competitions have now launched their campaigns and are at the point of increasing their websites' conversion rates while you're still about to start yours.

Enhancing your site's conversion rate is a vital part of your PPC campaign. To concentrate on enhancing your conversion rates, don't wait until bid rates are too expensive. If you want to increase your conversion rates effectively, turning to a qualified PPC Management Company would be the best decision you'll make in your campaign. As bid prices continue to rise, it's more and more important that you let the pros do the PPC Search Advertising for you.

by: Rosamay Claire Jovellar

POST COMMENT

Oracle Advertising Sets An Example For Many Pay Per Click Advertising Can You Guess The Leading Direct Response Advertising Tag Line? Organic Seo Versus Ppc Advertising How Facebook Advertisements Work Facebook Offers Advertisers an Alternative in Pay Per Click Advertising Quality Guide To Pay Per Click Advertising You Can Advertise Anywhere By Neon Sign Real Time Advertising Ideas For Using Corrugated Plastic Signs For Advertising Twitter and Facebook Contests Are the Future of Interactive Advertising Facebook Ads - Facebook Advertising Image Editing:A must for advertising agencies and publications