Google Adwords Confusing about Conversion Rates

What is actually an average Conversion rate?

[JamaicanFood]

Hey guys,

I am confused and scared to take the plunge...I have identified keywords not optimized for by others that can pull in at least 1,000,000 searches/hits per month.

I am thinking: my product sold at $5.00 each...
I get a 80% CTR i.e 800,000.00 each keyword PPC at $0.01.

Is a sensible conversion rate 0.5% or is this TOO HIGH on average. Can some Google Expert let me know what to realistically expect?

[mkelly7777]

Your CTR rate on your ads will be much more like 1-4% on Google Search network, much lower if you decide to run your ads on Google's Content network.

So your CTR assumption is way off.

Conversion rates seem to be all over the map. I've seen 1%, 5%, 10% - I'd be interested in what other people have experienced.

[sem4u]

Your CTR is way off - people will click on sites in the regular SERPs a lot of the time.

Conversion rates do vary a lot according to how they are measured and what you are selling. I would say that a 1%-3% conversion rate was good.

[JamaicanFood]

Ok guys thats cool, so should I assume at least 98% CTR?

If so then adjust the Conversion rate to 1% - Worst case scenario. What I have done is to use the Overture Search Tool to guage the searches.

This is good news guys I opened a thread in the Ecommerce section that might be valid here. It has to do with which countries have the highest conversion rates when I am choosing wher to post my ads, that Have the highest probability of a sale..

Any thoughts on this

[JamaicanFood]

Ooops....

Did you guys say 1-4% CTR are you guys for real. Is this even when the ads appear on the top of the regular SERPS.

This is hilarious, this means that to actually break even you must find the blend between PRICE, HITS, CONVERSION RATE and CPC. This is a major task.

How do I ensure that all my ads appear on the top of the SERPS instead in a small corner to the right, is it a trick. I already know that no other site or person is bidding on these keywords..?

HELP...

[mkelly7777]

Yes, exactly, more like 1-4% CTRs. To get at the top of SERPs you need to focus on Search Engine Optimization of your Web pages - there is another board on this site about that.

Yes, you'll likely find selling a product for $5 it will be quite hard to make Adwords advertising work.

[Murdoch]

The Blue Bar ads only appear when a phrase has enough searches to warrant one. If it is a low-searched term it will probably never get a blue bar ad.

[sem4u]

Some words may also be subject to a miniumum bid even if there are no other ads!

[JamaicanFood]

Why would Google impose a minimum bid say of 5Cents even if no one bids for the word.

There can be no logic behind this action rather than more money for Google.

Thats my opinion though does anyone know different...?

[Nancy99]

I have had very good luck with clients getting ads into the blue bar section. My tactic is to groom the adgroups for low performing keywords and drop them. Work to raise the CTR to above 2.5% and that seems to be the magic number to get in the top bar. Doesn't hurt to have a budget of $300-$500 per month in clicks either, but the blue bar is a factor of ad performance and a reward from Google.