How to Improve Your Conversion Rate in Google Ads?

How to Improve Your Conversion Rate in Google Ads?

In today’s article we’re about to discuss some key areas related to planning and running search campaigns as well as various methods of evaluating their effectiveness. We’ll spill the beans and tell you how to efficiently improve sales of your products and services.

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However, we’re going to take a little different approach, instead of focusing on the campaign itself, we’ll discuss a few external factors that affect it and whose optimization can directly influence your financial results. We hope that today is the day when you’ll find inspiration to organize your advertising activities.

Without a shadow of a doubt, Facebook, Google Ads or SEO are neither a particularly new form of advertising nor some secret tools that would magically generate sales. Nevertheless, it’s worth taking a closer look at Google, Facebook and other online advertising channels because numerous factors affect and determine whether the campaign is successful in the end. We’ll try to put these activities into the 4P model, meaning the marketing mix that probably every marketer is already familiar with.

The 4P model consists of:

  1. Product
  2. Price
  3. Place
  4. Promotion
  • Product – this is simply everything you offer: USP, the technological process, brand, servicing or guarantee.
  • Price – this is the cost the customer has to pay in order to purchase the product. The price directly influences the demand and conversion rate. When the product is expensive, you can expect less demand and a lower conversion rate. According to the research, product price is the main factor affecting the customer’s decision making process.
  • Place – these are all activities dealing with the delivery of product to the customer. A website is the main sales channel in the cases we’re discussing today, therefore all UX/UI activities that have a direct impact on conversion rate are the key to success.
  • Promotion – these are marketing activities defined as communication of the brand with the customer. Promotion includes all PR activities, special offers or search campaigns.

The 4P theory itself has evolved over time and now we’ve its variations such as the 8P model that takes into account: people, processes, programs and physical evidence. According to the definition of the marketing mix, the final success, meaning sales, is determined by all segments of the 4P model.

The picture below shows specific areas of the modern marketing mix:

Target market

 

If you want your campaign to be successful, you need to optimize every of the mentioned aspects. And this task is easier in the case of big companies which approach marketing consciously and which employ marketing specialists or even entire departments. Most often, we focus on tailoring the appropriate tools of Google & Facebook platforms to our specific goals. When it comes to small companies, we often function as marketing advisors who help clients to optimize the main elements of the marketing mix, such as unique product features, brand promotion, special offers or UI/UX tips. This is the added value of cooperating with specialists at Delante.

All elements of the marketing mix affect sales and paid search campaigns are one of the factors determining whether your business will be successful.

What are the objectives of the campaign?

Probably many times you’ve heard someone promising you that they would increase your sales by x% immediately after launching the campaign. We hope that you weren’t fooled by such promises. However, the problem arises in the case of start ups, which, encouraged by the vendor’s promises, decide on this form of advertising and forget about other elements of the marketing mix. If you want your campaign to generate satisfactory results, you need to be active in many areas and Google Ads is only one of the channels that enable improving traffic to your site or its reach.

So are the promises of an x% increase unrealistic? Well, definitely, unless they were preceded by a thorough analysis. On the other hand, the situation is completely different in the case of a reliable estimation which takes into account elements such as campaigns conducted so far, other advertising activities of the client or the marketing mix. Otherwise, there may be a possible increase but it’ll only be a stroke of luck. That’s why you should maximize your chances of success. Keep reading our article to find out how to do it.

Throughout all this time, by conversion we mean direct sales and many companies use Google Ads mainly for this purpose. It isn’t wrong, however, remember that both Google search engine and the AdSense network offer a much wider range of possibilities and can realize other objectives, not only the ones related to sales.

Some of the clients willing to start their adventure with Google or Facebook Ads focus on short-term goals meaning direct sales. As long as it’s the only sensible approach in the case of certain industries, it’s not the most efficient solution when you take into account the realities of today’s market and the emergence of hypercompetition.

We’d suggest both clients whose campaigns already generate satisfactory results and those who are just starting their adventure to expand their horizons when it comes to marketing tools available on the market. Determine your long-run goals already at the stage of devising your strategy and it’ll automatically improve your sales. The most important short- and long-term goals include:

1. Short-term goals:

  • ad impression and range,
  • traffic to the site,
  • direct reactions such as sales, generating a lead, contacting the company after visiting the site,
  • subscribing to the YT channel, liking the fanpage or reacting to the post.

2. Long-term goals:

  • Building brand awareness,
  • Improving customer loyalty,
  • Increasing the number of customer recommendations,
  • Improving customer awareness.

These objectives can be achieved with the use of Facebook and Google Ads. Most of the elements can be successfully measured with Google Analytics, Facebook Analytics or Yandex Metrica.

Customer’s path and Google Ads

Google has developed its customer’s path. To some extent, it’s based on the well-known AIDA sales funnel. According to Google, the 4 steps of the customer’s path include:

  1. Showing that your product exists.
  2. Interesting potential customers with your product.
  3. Encouraging potential customers to act.
  4. Taking care of recommendations and customers coming back to your site.

Model AIDA

According to P.H. Kotler, modern marketing activities should aim at building a group of loyal customers who would come back to your store and recommend it. All your activities ought to ultimately focus on achieving this goal.

When developing a marketing strategy, you should use purchase and recommendations to ensure a strong relationship between the customer and the company or brand already at the stage of building brand recognition. We also need to draw attention to one more aspect mentioned by Kotler, users can migrate and change their functions within the sales funnel. A user who is on the stage of building brand awareness, doesn’t necessarily have to become a potential customer next, he/she can just become a customer right away. Obviously, users can also recommend the brand even if they’ve never been its customers and Tesla is a living proof of that.

A strategic approach to paid search campaigns

Search campaigns in Google and Facebook Ads are conducted in 4 areas of the sales funnel. We focus on building brand awareness, reaching potential customers, sales and customer loyalty.

Brand awarenessCommunication:

  • GDN: a brand narrative, reach advertising aimed at a wide audience,
  • YT: Bumper ads, reach ads,
  • Search: general and long tail phrases. Supporting the promotion of the content marketing strategy.

Goal:

  • Building reach,
  • Increasing the number of impressions,
  • Building brand awareness,
  • Assisted conversions.
Purchase decisionCommunication:

  • GDN: campaigns focusing on the key USP of the brand,
  • YT: Ad sequences, YT for action,
  • Search: long tail and supporting the content marketing strategy.

Goal:

  • Increasing traffic to the site,
  • The number of video views,
  • Branding,
  • Assisted conversions.
PurchaseCommunication:

  • GDN: product campaigns, sales. Clear call to action,
  • YT: YT for action, sales campaigns,
  • Search: key sales phrases, product ads, call extensions.

Goal:

  • Clicks,
  • CTR,
  • Direct actions like sales, call or application downloads,
  • Impression share.
LoyaltyCommunication:

  • GDN: remarketing and implementation of long-term strategy,
  • YT: YT remarketing and implementation of long-term strategy,
  • Search: RLSA

Goal:

  • Increasing customer LTV,
  • Retention and coming back customers,
  • Recommendations,
  • Reducing post purchase dissonance.

The GDN advertising network and Facebook ads can be successfully implemented in order to help you achieve your objectives at any stage of the shopping path. Remember that your message should be tailored to your goals. You’ll need to use different ads when building brand awareness and different ones when selling. It could be stated that GDN campaigns aim at reaching the recipients before they even enter given search phrases into the search engine.

Search campaigns, meaning sponsored links and PLA ads will be a perfect medium for achieving your sales objectives. Thanks to them you’ll reach people searching for a specific product or service in real time. We aim at achieving 100% impression share and generating the highest possible CTR because this format has the best conversion rate. If the remaining elements of the marketing mix are adjusted as well, the probability of sales increases. The search network advertising format can be also applied to reach potential customers thanks to your content strategies. A blog describing subjects related to products on your offer will be perfect for this purpose.

According to the AIDA model, even when customers make decisions, the chance of conversion increases radically in the case of a strong brand (high brand awareness, optimized and valuable USP).

Ideally, you should run your campaigns in every area of the sales funnel. This way, you’d increase not only conversion rate but also the number of your conversions. The higher stages directly affect the lower ones. It means that thanks to taking care of your brand awareness, you’ll increase the number of your potential customers who will someday become your real customers and then, at the final stage of the sales funnel, they’ll recommend your products or services.

Today, customers can move around the sales funnel stages and change their roles. They can become real customers right away, like in the case of a spontaneous shopping spree. Moreover, customers can also convert directly from an ad by making a phone call, sending a form or downloading applications. And finally, people can recommend brands without being their customers at all.

Prove conversion rate Google Ads

How to achieve your main goal and increase your sales?

Now, we’re going to tell you how to improve your profits. And this piece of information is derived directly from Google guidelines. Although the tips might be obvious, they can give you some hints concerning your pricing policy.

Most companies want to monetize their marketing activities as soon as possible. Considering today’s possibilities of e-marketing and analytics, you have an opportunity to thoroughly examine the profitability of particular activities or advertising areas. Therefore, it’s not surprising that some entrepreneurs focus only on certain short-term objectives. However, if you neglect your long-term goals, it might limit the possibilities of improving the company’s profits in the long run.

Your ROI or ROAS can be improved either by reducing costs or by increasing revenues.

  • The cost reduction can be related to the campaign itself and it’s about reducing CPC or stopping the campaign with the lowest ROI/ROAS. The company’s cost reduction includes also operational or production costs.
  • The increase in revenue improves ROI/ROAS ratios and translates into higher profits. It can be done by optimizing UX/UI, conducting promotional activities in the store itself, improving the offer, optimizing the conversion rate or increasing expenditures on the most effective campaigns.
  • The price increase will improve the financial results. Unfortunately, this action may reduce the sales value. According to the research, we can clearly state that the price is the main factor influencing the decision making process. A higher price will increase your income but at the same time it will decrease demand, leading to a lower profit.
  • The number of conversions can be increased by lowering the price or increasing demand.

Conversion is one of the key factors affecting the company’s final financial result. Properly implemented analytical tools allow you to effectively measure user behavior and your conversion rate, based on which you can assess the quality of your website in terms of sales. You can improve the conversion rate by doing SEO or trying our various UX/UI solutions. A detailed website analysis and A/B tests for improving the conversion rate are one of the main areas of work that needs to be done by the client.

When analyzing your conversion, consider many methods of interaction between the customer and website or brand. Usually users perform many actions before converting. Moreover, it happens very rarely that users convert during their first visit to the site. Of course, we need to remember about some unusual situations like spontaneous shopping sprees, however, they occur quite seldom. Generally, before making a purchase, the potential customer reads opinions about the product and the company, compares offers using price comparison engines or reads reviews on forums or social media platforms.

Contact our advertising specialists if you need to discuss your company’s marketing strategy.  We’d be happy to talk about your goals and suggest SEO and SEM tools that will be perfect for you.

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Author
Senior SEM Specialist - Adrian

Senior SEM Specialist

SEM specialist since 2009 professionally connected with Internet marketing. He specializes in performance marketing, conversion optimization and data analysis. He gained experience working for both the agency and the client. He is passionate about road cycling and mountain cross-country running.

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