Set Conversion Targets

Posted in Improve Metrics

Estimate a Target Value for Conversions

If you have multiple products, or conversion types, then estimate multiple values for each type of conversion. This process, even if it’s imperfect, puts the concept of “Return on Ad Spending” front and center!

Estimate Conversion Target Values – Service Companies

For some advertisers, different types of leads have different values. For a plastic surgeon for example – a conversion for “botox” is worth less than a conversion for “face lift.”

Estimate Conversion Target Values – Online Stores

This is especially true for online stores. Sales from different product categories have different potential values. You can help to clarify this issue by categorizing ad groups within product categories with similar potential sales values, because accessories or parts keywords are typically worth much less, for example.

For some advertisers, it helps to consider thinking of conversion targets based on a a percent of sales price.

Also, for many advertisers, order size can be more important than sales price, so consider this factor, if you’re an online store.

Benefits of Setting Conversion Value Targets

Once you establish a target CPA (cost per acquisition), then you can begin bidding for higher positions for those keywords which are earning conversions at a cost beneficially lower than your target, and bidding for worse positions for those keywords which are not meeting their CPA targets (or maybe pause them if they are too general). Once you apply this methodology, you’ll find that the economics improve!

For more information about setting conversion targets, phone Hanna in Denver at 303 975 2810.

Also consider: Define Conversions.

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