Adwords Definitions: Conversion Rate
Last week I started defining a few terms in Adwords. Google Adwords and Pay per click advertising has all of it's own jargon which can be overwhelming to take in. Today we are talking about the all important - Conversion Rate
Pictured above is a snapshot from a Google Adwords Account. The conversion rate is 39.29% which is quite high. A conversion rate of 15 - 20% would be good but this conversion rate is staggering. I do know that on this particular campaign the customer is giving away a free sample as a way to generate leads.
How is conversion rate determined?
Google takes the number of conversion 11 and divides it by 28 (the number of clicks) and then multiples by 100 to get a percentage.
In the last Adwords definition post we talked about Click through rate. Now a high click through rate with low conversion rate would be a problem, because you are getting people to the page, but not getting any conversions. Basically what this means is you are spending money but have nothing to show for it.
How can you increase conversions? - Let's save that question for tomorrow!
Want to learn more - Adwords Training June 5th from 2pm - 5pm http://www.reachd.com/training/adwords101
Rodney Bartlett
Lead Instructor - Reachd