GoTo and conversion

Why is it that low?

[oLeon]

We use GoTo since a few months to get clicks. (We get money with pay-per-click.) Because we are from Germany we thought weīll get some traffic in relevance to the booked german keywords. We avoid to take english keywords which are not specific enough, i.e. we booked only keyword where the relevance to our homecountry is clear (e.g. we donīt take "notebook" or "computer" but germam single kw like "kommode" (commode), "lampe" (lamp)).
We now did make the experience that the conversion for our customers are really unsatisfactorily. Normally we generate a conversionrate about 2-4%, but with GoTo clicks we reached only 0,2%. (Our aim is to have more than 2% cvr, thatīs what we promise and reach normally.)

I guess that has to do with the listings on AOL, Netscape and so on, where new users type single keywords into the searchbox cause they donīt know how to search right. I can remember a thread last autumn, that with the new listings on AOL and Netscape the conversion went to the ground during the clicks went up to sky.

Anybody else who has the same experience? Or some ideas?

[redzone]

There are a number of factors that could be contributing to lower conversion rates with Goto generated traffic.

Your theory on broad keywords associated with AOL and NetScape, also apply across any search function. Many times user will type a keyword such as "lamp", when they are really looking for "antique lamp"...

My suggestion would be to delete broad keyword phrases from Goto, and only bid on targeted 2+ phrases that are extremely relevant to your content.

Though keywords such as furniture would generate many clicks for an "online furniture store", more targeted keywords including "brand names" carried by the online store, would yield a more targeted consumer.