What is Good Conversion Rate?

[bava_seo]

Hi,
What is minimum conversion rate we have to achieve. in case of CTR 1% is good CTR same what about in the case of Conversion Rate?

[nakita_dog]

A good conversion rate is very particular to your situation. What might be good for you might not be good for me.

Even if you have a low conversion rate which results in a high ROI, that could be considered good for you.

On the flip side, you could have a high conversion rate which could result in a negative ROI. That would be bad.

[RhinoFish]

CTR = Click Through Rate (clicks / impressions)
CR = Conversion Rate (sales / visitors)

Which are you referring to?

[bava_seo]

Actually i would like to know what conversion rate is getting by other world, so that i can make another strategy if iam not getting respective conversion rate which others are getting.

Bava_seo

[poster_boy]

What is minimum conversion rate we have to achieve. in case of CTR 1% is good CTR same what about in the case of Conversion Rate?

Actually i would like to know what conversion rate is getting by other world, so that i can make another strategy if iam not getting respective conversion rate which others are getting.

I wouldn't put any credence in these generalized metrics, even if one gets quoted in this thread. 1% is certainly not a threshold to target in terms of CTR and the only conversion rate that you should target is one that results in a positive ROI based on what you're paying.

CTR depends on so many factors... including the following and so many more: the vertical, your average position, the strength of competition, how well your ad is written, how close your ad matches the query, the match type of the keyword, seasonality, the day of week/time of day, the particular syndication partners that drive traffic to this keyword, what country you're in, who you're targeting, and more.

Conversion depends on just as many factors... including all the drivers named for CTR - plus site experience, payment options, product selection, and more...

[netmeg]

I have clients with conversion rates of .5% who are happy. I have clients with 45% conversion rates who are happy. Too many variables to say what's a good conversion rate. Don't worry about what the industry is doing. Are you making money? That's what you should worry about.

[BDuns]

Actually, you should worry about what others in the industry are achieving - but only worry about YOUR industry.

If your competitors are converting better...maybe they have better products, better keywords, or....? It isn't enough to just know that you're making money...can you be making more? Knowing your competitor's conversion rates might provide insight into that.

So then, how do you get your competitors to tell you their conversion rate? ;)

[mike_ppc]

One step further is to analyze you CPO (Cost per Order), which would factor CVR (CR), but also CPC.

[vincevincevince]

If you are selling houses, a 0.1% conversion from PPC is something to celebrate. If you are selling small value commodities then you'll need to drown your sorrows if you're not breaking 5%.

Commissions
House : $100,000 with 3% agency commission = $3000
Widget : $1 with 30% commission = 30¢

Assume a 10¢ long-tail click for both:

Cost per conversion
House : 0.1% conversion at 10¢ ea. = $100 per conversion
Widget : 10% conversion at 10¢ ea. = $1 per conversion

Profit per conversion
House: $3000 - $100 = $2900
Widget: 30¢ - $1 = -70¢

In the small widget sector, I've driven targetted affiliate traffic which has converted at 70%, but that was exceptionally targetted.

[AdWordsAdvisor]

What an excellent way to explain this, vincevincevince. Very nice.

AWA