Are You Putting Your PPC Budget to Good Use?

by Nathan Steinmetz, Digital Marketing Strategist

Adding more money to your pay-per-click ad campaign won’t always guarantee a higher conversion rate. Align your efforts with clearly defined conversion goals so you can determine where to spend your money.

Calculating and Tracking PPC Conversions Rates

A conversion rate is the percentage of users who complete the desired action after clicking on your ad. To calculate a conversion rate, divide the number of conversions by the ad’s total number of interactions. The higher the percentage, the better your ad is driving results.

It’s important to reassess what you’re tracking as a conversion to ensure it’s aligned with your overall goals. If you’re tracking the wrong actions as conversions, it may not matter whether they’re increasing or not.

Defining Your End Goal

Think through what you want to accomplish when you organize a PPC campaign. A successful PPC campaign has specific parameters to measure your success. Do you want to increase page views to your site or have visitors submit a form? Maybe you want to increase your number of followers on Twitter or get more likes on Facebook. Each goal requires a specific approach to create an appropriate PPC ad.

Assess Your Conversion Value

Knowing the value of your conversions helps you understand the rate of return on your advertising investment. That’s an essential but often overlooked component when determining a PPC budget.

Here’s an example:

You have a form on your website people can use to request a service quote. Twenty people fill out the form, and each person generates $200 worth of business in a month. The conversion value of that form would be $4,000.

Improving PPC Conversions

  1. Use PPC ad platforms to your advantage: Platforms like Google and Facebook have automated strategies built in to help you reach your goals.You can tell Google that your goal is to maximize impressions, and it will do everything in its power to achieve that.
  2. Adjust your target audience: Low conversion rates may be the result of targeting the wrong audience or one that’s too broad. Consider being more specific about parameters like age, location, gender or household income.
  3. Align copy between ads and landing pages: Landing pages should reiterate the offer created by an ad. For example, sending visitors to a landing page about discount tires when they clicked on an ad to schedule mechanical services will negatively impact the ad’s conversion rate.

Contact TouchStone Digital and we’ll help you align your PPC goals with a strategic ad campaign to improve your conversion rates.

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