How to optimize based on conversion tracking records?

Ideas and technics

[vanderbolt]

I have just started to use conversion tracking and find so many variables involved in figuring out how to optimize based on conversion data. Any ideas and technics on how to optimize would be greatly appreaciated.

[ogletree]

Try to rank better for terms that convert the best. Often times you might have a page that is deep in your site. When I have a good page that ranks 4 or 5 on G I put a link to it from the front page. Do the same things for your top terms. I found many terms that I rank 4 or 5 and did what I mentioned. Sometimes one good anchor text baclink is all you need. KW density helps a lot as well specially if they are links to other pages or other sites.

[vanderbolt]

I am sorry if I was not clear. My interest is in optimizing adwords.

[vibgyor79]

- To begin with, create a separate AdGroup for each of your main keywords. For example, RED WIDGETS and its related keywords go into the RED WIDGETS AdGroup. BLUE WIDGETS and its related keywords go into the BLUE WIDGETS AdGroup.

- Decide what kind of ROI you want from AdWords. Decide how much you want to pay per lead or sale. This is your desired cost/conversion. Let's assume that your desired cost/con is $10.

- Let the campaign run for a week so that all your adgroups record clicks and conversions.

- Let's assume that the RED WIDGETS ADGROUP has received 200 clicks at $1.00 Avg CPC. Assume the cost/con is $12 (20% over your desired cost/conversion). So reduce the MAX CPC of this AdGroup by 15 to 20%.

- Let the AdGroup collect 100/200 clicks and check the cost/conversion now. Keep adjusting the bid prices by a percentage till you get the cost/conversion you want.

Things to Remember -

- If your desired cost/con is $10 and if you are getting a cost/con of $8 for an adgroup, you can consider increasing the prices a little (so that your ad position increases thereby increasing the number of clicks)

- Do not decide the 'fate' of an AdGroup with just 25 or 50 clicks. Let it collect atleast 100 clicks so that you get a true idea about the conversion rate of keywords in that AdGroup

- You can control the bid prices of individual keywords within the AdGroup to get the desired cost/conversion. But this is time consuming.

[ngsmith]

Hi,

There is maths that you can do to analyse the trends in your historic performance and come up with an optimal combination of bid positions to maximize profit.

Take a look at some of my other posts here or send me a sticky and I'll give you some references.

Neil.

[edited by: skibum at 3:36 am (utc) on July 6, 2004]

[ogletree]

Sorry I need to start looking what forum I am in. That should have been obvious to me.

[GuitarZan]

Hey,

- Decide what kind of ROI you want from AdWords. Decide how much you want to pay per lead or sale. This is your desired cost/conversion. Let's assume that your desired cost/con is $10.

What is the best way to do this? Say I only want to make $2 for every $1 spent. Say I make a $23.50 commission on each sale, so My cost p/ conversion would be $11.75? What if I could do better than $2 for every $1 spent though... How would I find this?

BTW, good post.

Thanks,

C.K.

[vibgyor79]

>>> so My cost p/ conversion would be $11.75

Yes - $11.75 is correct.

>>> What is the best way to do this?

You must be having a rough idea about the conversion rate of the website. For eg -

- Average website conversion rate is 10%
- Desired cost/con is $11.75

Avg CPC = website con rate x desired cost/conversion
= 10/100 x $11.75
= $1.17

That is, if Google delivers 100 visitors at $1.17 (total cost = $117), you will make 10 sales worth 10 x $23.5 = $235.

Hence, to start off with, set a max CPC of $1.25 for all the keywords/AdGroups. Wait for a week so that your keywords collect the conversion stats. Then change the individual CPC of your AdGroups/Keywords.