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