Conversion rates are one of the most important metrics in an AdWords campaign.
It refers to the average number of sales a campaign generates per ad click. This percentage can be calculated by taking the total conversions and dividing that number by ad clicks. For example, if your campaign generates 30 conversions from 1,000 clicks, your conversion rate would be 3%.
Why does this matter?
- A low conversion rate is an indication of a poorly performing campaign
- Increasing conversions would mean lowering your customer acquisition cost
This is why optimising for conversions is so valuable.
Just increasing your conversion rate by a single percentage can contribute hundreds, even thousands of dollars to your bottom line. And ultimately help you get even more out of your PPC marketing budget.
Here we look at several reasons why your campaigns aren’t generating any sales and how to improve conversion rates.
1. You’re Using the Wrong Keyword Matches
Not using the right keyword match type can have a negative impact on conversions.
Let’s say you want to use AdWords to target customers who are in the market for a digital camera. So then you bid on the keywords “digital camera” and start generating some traffic to your landing pages. But that campaign hasn’t resulted in any sales.
The keywords “digital camera” are simply too broad. In other words, you have no what idea what the intention is behind that search. The individual may not necessarily be looking to buy a new camera as they could be looking for books on how to take better pictures.
This distinction is important as you want to appeal to a specific audience to convert more clicks. Keyword match types give advertisers greater control on which searches trigger their ads.
Here is an overview of each of the keyword match types:
- Broad match: This is the default setting for ad groups. Broad match means that any searches related to your keywords will trigger your ads. If you add “buy digital cameras” to a campaign, then your ad will show for searches such as “digital cameras” and “digital camera reviews”.
- Phrase match: With phrase match, only search queries that contain your keywords in the order will trigger your ads. In the example above, your ads would show for searches such as “where to buy digital cameras” and “buy digital cameras online”.
- Exact match: This means that your ads trigger only when a search query matches your keywords exactly. For example, if you add “buy Nikon digital camera” to a campaign, only that exact phrase can trigger your ads.
Here are better examples of the different keyword match types:
Why does this all matter?
Because if your campaigns aren’t converting, it could be because of your keyword match types. A broad match search may deliver more impressions but would likely result in fewer conversions. Start with the phrase and exact match keyword to drive more targeted traffic to your landing pages.
2. You’re Sending Traffic to the Homepage
Creating ad groups gives you the flexibility to organise keywords by theme.
For example, if your store sells digital cameras, you could create ad groups to include keywords based on brands, types, and even accessories. The obvious benefit here is being able to create more targeted ads for each ad group which helps to improve click through rates.
Someone searching for a Nikon digital camera would be more likely to click on ad that highlights those keywords in the headline compared to a generic ad for an electronics store.
But even with well written ads, the landing page is another critical piece of the conversion puzzle.
Imagine if someone was searching for digital camera accessories and landed on this page:
The chances of them actually converting would be quite low.
The landing page doesn’t match the search query and there are too many distracting elements. Every click counts so the last thing you would want to do is to send traffic to the homepage.
Here are some key components of a well-designed landing page:
- Headline: The headline is perhaps the most important as it is the first thing that visitors see. Your headline should clearly describe your offer and match the search query as closely as possible. An engaging headline is far more likely to get visitors to read through the rest of the page.
- Copy: Well-written copy is what distinguishes your business from the competition. You can expect a stronger response by focusing on the benefits of your products or services. But aim to be as succinct as possible as no one has the patience or time to read through blocks of text.
- Lead form: The lead form is another critical component and is where visitors enter in their information to get started with your product or service. But keep the fields to a minimum as asking for too much information can have a negative impact on conversions.
- Image: Images do a far better job of attracting attention than blocks of text. Include an image that is relevant to your landing page to make it more appealing.
Here is an example of an effective landing page from Shopify:
Creating individual landing pages for each ad group definitely requires more effort. But you would have far better results by taking this approach instead of using a generic landing page.
3. You Don’t Build Trust
Unless you’re Coca-Cola or other Fortune 500 company, most people won’t know anything about your brand.
So it’s your job to build trust with your visitors and answer any objections they might have. Even with a compelling call-to-action or fast loading pages, visitors will quickly bounce out if they have any doubts. Failing to establish trust is a major reason why most people don’t convert.
Just imagine your own reaction if you were to land on a page like this:
The page is overly cluttered and fails to build trust so don’t make the same mistake here.
A survey by Econsultancy and Toluna asked participants which factors helped them to determine a trustworthy site:
Many responded with having a professional and well-designed site.
But what generated the highest response was the inclusion of trustmarks which verify that a website is legitimate. If visitors are going to enter in their personal details such as their names, email address, and even credit card numbers, they want to know that their data is safe.
Here are some examples of trust seals:
Just the inclusion of a trust seal has been shown to have a positive impact on conversions.
Social proof is another powerful way to build trust with your visitors. If a product or service receives positive reviews or is recommended by trusted individuals, we are more likely to have a more favourable attitude towards it. In fact, user reviews are proven sales drivers as they can eliminate any doubts that potential customers may have.
Here is an example of social proof on Dropbox’s business page:
The inclusion of the testimonial as seen here is another effective way to establish trust.
In addition to having a professional design for your website, use trust seals and other forms of social proof to build trust with your visitors. Even a single change such as the addition of a trust seal can boost conversions on your landing pages.
AdWords continues to be an effective channel to reach target audiences. But if your campaigns aren’t generating any sales, your business is losing money.
Familiarise yourself with each keyword match type for better ad targeting and create optimised landing pages for each ad group. Establishing trust with your visitors is another must to get visitors to take any desired actions whether to make a purchase or try a free trial.
Avoid some of the common mistakes outlined here and follow our recommendations to boost the conversion rates for your AdWords campaigns.