Conversion rate: essential to analyse the Google Ads campaigns profitability
A conversion is an essential process for your e-commerce. Indeed, tracking the conversion of your Google Ads will allow you to evaluate your conversion rate and thus guide your decisions regarding your online ads. The myAds feature developed by Boostmyshop allows you to automate the management of your Google Ads campaigns and thus control your advertising expenses for an optimal return.
What is the conversion rate?
The conversion rate is the percentage resulting from each interaction with an ad. It is calculated by dividing the number of conversions by the total number of interactions.
For example, if for an ad you recorded 20 conversions after 1000 interactions, your conversion rate is: 20 / 1000 = 2%.
Why is the conversion rate important?
The conversion rate is one of the rates to take into account to measure the profitability of your Google Ads campaigns. It is essential to check the conversion rate of your campaigns, however, not all sectors of activity generate the same conversion rate. Which is why you should compare it with the average conversion rate of your sector.
Conversion rates in the e-commerce sector
Conversion rates in the e-commerce sector vary depending on whether the Search or Display ads are used. For ads on the Google Search Network, the average conversion rate in the e-commerce sector is 2.81%, compared to 0.59% in the Display Network. As an e-merchant, these are the rates that you should use to determine whether your conversion rate is good or needs to be improved.
How to improve your conversion rate?
Your conversion rate is below your expectations and you want to improve it? To do so, you will have to define the objective of your campaigns correctly and examine your landing pages. They need to be clear and interesting. Put yourself in your customer’s shoes, ask yourself what they are looking for when they arrive on that page, and above all, if they will find the answer.
You also have the possibility of putting keywords with a low conversion rate on standby. In fact, the tool detects by itself the keywords and campaigns that are not making you any money.
MyAds will first recognize and classify your products in different campaigns according to their profitability. It will then measure the return on investment of each of these campaigns and stop them if they are not profitable. This can be called managing your campaigns by margin.
Tracking your conversions will allow you to know which Google Ads campaigns are profitable or not for your e-commerce site. Combine this with myAds technology and you can maximise the conversion value and quickly reach your goals.
Glossary
Interaction: This is the main user action associated with an ad format: clicks and swipes for text and Shopping ads, views for video ads, calls for call extensions, etc.
Conversion: This is the number of times a user interacts with your ad (e.g. clicks) and performs a valuable interaction for you, defined in advance, such as an online purchase or a call.
Conversion rate: It is calculated by simply dividing the number of conversions by the total number of interactions with an ad that resulted in a conversion for a given period.
Campaign: A Google Ads campaign is a set of ad groups (ads, keywords and bids) that share a budget, location targeting and other settings.
Search Network: Ads that run on the Search Network can show next to search results on other Google sites (such as Maps, Shopping and Google Images), as well as on Google’s Search Network partner sites.
Display Network: A group of more than two million websites, videos and apps where you ads can appear by targeting to show your ads.
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