When deciding what next step to take in Google ads, a necessary question to ask is whether to focus on conversion rate optimization or increasing traffic. When the conversion rate is at an acceptable level, a good marketer will focus on traffic. Usually this means working within Google Ads. However, often when the conversion rate isn’t at an acceptable level the marketer will immediately jump to on-page efforts to increase the rate. While this can often be the right choice, there are many cases where the efforts would be better spent inside of Google Ads.
There are three main reasons the conversion rate isn’t at an appropriate level. The first is because the landing page is not optimized. We’ve covered how to approach this in the previous section. The second is because the cost per conversion is still too high, and the third is that the visitors aren’t as relevant as they should be. This section will discuss the latter two reasons.
When someone says that the conversion rate is too low, what they are really saying is that the cost/conversion is too high(or the value/visitor is too low). If the conversion rate is only 0.5% but the ROI is $5, it would make the most sense to work on increasing traffic, not increasing conversion rate. This may depend on the client, but most clients would be okay with spending $1 to get a $5 return. The lesson to take from this is to think of conversion rate as a rate where you are happy with the return. The return depends on the conversion rate AND the cost.
When optimizing for the conversion rate within Google Ads you need to think of increasing the relevant traffic. Increasing the relevant traffic to the site will increase the conversion rate. For example, you have a client who sells industrial 3D printers. There is an ad group with two keywords. One is “industrial 3d printers” and the other is simply “3d printers”. This ad group has an ROI of 1.2. The ROI is above one, so the ad group is profitable, but it doesn’t have the volume necessary to generate the desired profits. Situations similar to this arise often.
There are two ways to approach this situation. One way is to try to decrease the cost per click. The other way is to increase the relevant traffic. This could actually include increasing the cost per click. Increasing the relevant traffic is increasing the conversion rate. These have a direct relationship. So the question is, how do you increase the relevant traffic?
Keywords
Above I presented a situation with two keywords. It’s pretty obvious that “industrial 3d printers” is more relevant than “3d printers”. One way to increase the overall relevance of the traffic could be to pause “3d printers”. However, this may be too extreme. The only time you should consider this option is if the keyword is very irrelevant or the campaign is limited by budget. Another, less drastic way would be to lower the cost per click for “3d printers”. This can have a twofold consequence. First, it could lower the overall cost/conversion which increases the ROI. Second, it could also lower the total cost of less relevant traffic. This free’s up spend for the more relevant “industrial 3d printers”. The overall affect will be a lower cost per click and a better conversion rate.
Ads
There are many other ways to increase the relevant traffic. Ads tests is also a simple method to increase the relevance of the traffic. Sometimes a good ad test will decrease the click-through-rate but increase the conversion rate. This means that your ad is communicating the right message better. It’s getting clicked less by irrelevant traffic and more by relevant traffic. Another way to do this is through extensions. Extensions help communicate the right message to the right people before they click. It also can give them more of an incentive to click.
Bid Adjustments
The last thing I’d like to focus on are bid adjustments. Bid adjustment’s sole purpose is to increase the relevant traffic to your site. By looking at the ad schedule you might find that people who visit your site during the evenings are more likely to convert. They are more relevant. Thus you can either decrease the bid on the less relevant times or increase on the relevant times. (If it’s a limited-by-budget campaign it’s best to only decrease the bids.) The same is true for the other areas where you can adjust bids. When optimizing the conversion rate within Google Ads it’s very useful to look at ad schedule, location, device, demographics, and audiences. Make sure to only adjust the bids where there is enough data (at least 100 clicks).
As with on-page CRO there are many ways to optimize the conversion rate within Google Ads. Hopefully this will help jump-start those ideas.