27 – Adwords

Written by Alex Harris

conversion rate optimization mastermind podcast


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Frank

What are the things to remember with AdWords is as much as I love numbers, sometimes you don’t wanna get caught up in the numbers. I’ll give you an example like click through rate. In general, click through rate is you wanna be as high as possible and it’s a very good thing like a high click through rate. Click through rate is one of the biggest things for factors, qualities, score which means that it can mean that you pay less for clicks. You obviously wanna high click through rate but all the clicks on the world just don’t matter unless your clicks are targeted. You need to make sure that your ad not only getting a lot of clicks but you wanna make sure that it’s getting a lot of conversions as well. If you’re getting a lot of clicks but no conversions then it’s just causing you a lot of money and it’s not a good ad. So make sure that your ad is getting a lot of relevant high quality leads.

Alex

Yeah, that’s definitely a key take away with anything in adwords coz there’s too many people focus on clicks and they should be optimizing for revenue for conversions. You can only get so much traffic. You need to get that traffic actually convert.

Frank

Yeah, you really need to. It’s just you know I have a tendency to get caught up in the numbers and you realize you have to look behind the numbers sometimes too.

Alex HarrisAlex

Yeah and you know obviously you wanna get people to buy from you or generate leads or call. So continuously optimizing whatever those conversions are and it’s really the path to follow and you have micro conversions. It may take a couple touch points before people actually convert. Frank, I don’t know if you do retargeting but on some of my bigger clients, they take at least 3 or 4 different types for the customers to see the ads or click on that ad before they actually convert.

Frank

Yeah, that’s true in most industries and then I’m sure it’s true in local as well. I don’t do a lot of retargeting and I don’t have like you’re talking like of conversions goals setup along the way. Most of my local clients are more kind of a their needs are more urgent. If someone goes to the site, their ads are pretty high that they come all that day but you absolutely need to track as much as Google. It will light your track and analytics setting up goals and having good handle about visitor experience on your site. Like you said, how many touches it takes before they become a customer.

Alex

Yeah, this is the stuff that you really have to figure out or maybe work with an analyst. You can actually use KISSmetrics, KISSmetrics is complementary to Google analytics. It allows you to track actually who’s doing stuff on your site and if you can now figure out that ideal person, you may be able to target more people in your ads. So building after – is really important and determining what the goals are in the end. I don’t know how it’s done on a smaller business or local perspective but in some of the bigger campaigns that I helped build landing pages is where, I don’t manage any adwords, I just build, I do everything post click in the landing pages and optimize their click view pass but all the pay per click companies that I worked with, they’re managing to a cpa so I’m always trying to make landing pages convert better so it can actually lower their advertising cost because there’s only that customer acquisition price, you can only be –and that’s a little bit different on how you manage your campaigns right, Frank?

Frank SalvatoreFrank

Yeah, really is. I just don’t have necessary insight into the revenue side of things for the leads that I generate. Most of my clients are small businesses and I don’t usually see that data to come up with great cpa data, I wish I did. Now, if you’re operating on a local level, you can try to aggregate data from across your campaigns wherever possible. If you have a lot of clients in vertical that would be not exactly cpa but it helps you test things like ads and keywords to come up with something that’s statistically significant that you can apply to campaigns.

Alex

Actually, I’m totally not an analyst and I totally probably could screw this up but some of the key metrics that my clients and partners do track aside from conversion rate, click rate but it’s also average order value in ecommerce, lifetime value and then another one I just learned from out other mastermind group and member Bill, lifetime margin per visitor. And it totally make sense to me, I just didn’t really thought about it but taking into account your advertising cost maybe your commercials, your direct mail, what is the actual margin that you actually making per visitor.

Frank

Yeah, that’s an impressive stat. I’ve never heard of that one before. That’s be good to look at.

Alex

Yeah, absolutely. This is what you have to do. You have to figure out what’s more important for you. Obviously, you want more margin and you want more profit and you wanna figure out the lifetime value of your customers and that’s what really with cpa is all about. Figuring out a cpa is because you might be bringing in ecommerce a person who’s buying a $5 item versus for someone who’s buying a thousand item. What’s that medium in between that and that’s probably your average cpa’s gonna be.

Frank

Yeah, I think so.

Alex

Cool, awesome! If you wanna learn more about us, you can visit cromastermind.com where we talk about this conversion optimization, driving traffic to your site and you can learn more about us there. Thanks a lot Frank!

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