ROI,
although simple to calculate using AdWords, Analytics and spreadsheets, is a
tricky beast! Improving all on-page aspects, removing obstacles to conversion,
streamlining checkout processes and reducing costs within AdWords all help to
improve ROI.
Conversion Tracking Code
You may need
to set up a number of different groups of conversion tracking code after a
purchase has been made.
Linking With Analytics
Linking your
AdWords account up correctly with your Google Analytics account allows you to
analyze the PPC traffic from within Analytics. This means that you can see more
detailed data on how your paid traffic behaves on the site, allowing you to
determine obstacles to conversions. It is also possible to then compare organic
traffic and other mediums with paid traffic.
Tracking
Using call
tracking and heat mapping and integrating this with your analytics data, where
possible, also provides valuable insights into calculating ROI.
Call
tracking allows you to track phone calls as conversions and down to keyword
level. This can be imported into AdWords or viewed separately, either way there
may be hidden value in those keywords.
Heat mapping
allows you to see how people are interacting with your site in great detail,
thus allowing you to identify problems or improve visitor flow through to
conversion
Behind ROI
This is top
level Return On Investment though, digging into the data further will reveal
much more information. At first glance a keyword receiving loads of clicks and
good CTR but with a poor Conversion rate might be a waste of money, but
keywords can assist other keywords, meaning that this keyword could assist in a
large percentage of conversions. There is no clear ROI on this keyword but it
would cost you in profits to delete it, understanding the relationships between
data gives better insight into understanding your Return On Investment.
Looking for
the common denominator will help you to spot opportunities and then exploit
them. For example, look at the top converting landing pages for paid traffic.
Compare them to the lowest converting landing pages and you may spot an obvious
difference; something that you could change on the lower converting page.
Research
for benchmarking paid search marketing
· Average conversion rate for the search network in Q3
2012: 5.63%
· Average conversion rate from the display network in Q3
2012: 4.68%
· The Travel industry has the lowest conversion rates
· Internet / Telecoms has the highest conversion rates
across search & display.
· The display network (ads outside of Google on
publisher sites useful for generating awareness) generates 5x the volume of
impressions but 1/5 of the clicks compared to the search network (searches
within Google and its partners).
· Clickthrough rates are not covered by this research,
but Wordstream suggest an average 2% to 5% paid search clickthrough rate for
competitive industries and a 5%+ click-through rate for non-competitive
industries for top positions with brand terms higher.
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