During these rough economic times, many internet retailers are forced to make hasty optimization decisions in an effort to maximise profitability. Traditionally, if a keyword brings in clicks and/or cost with little to no return it is aggressively bid down or paused altogether.
Most of the time, this seems like the right thing to do – you’re maximising your account efficiency by controlling the bleeding. However, what if I told you that these keywords are your keys to opportunity?
Any savvy search marketer will, or at least should tell you that the most important metric in a paid search campaign is conversion rate. If you are in the business of making money, you want more than just visitors to your site. You want to close those customers at the highest frequency possible.
With tools like Google Website optimiser, all advertisers now have the ability to test changes they make to landing pages. Tweaks can be made to messaging, look/feel, images, etc, in an effort to convert visitors.
Try using the following strategy:
1) Run a keyword report spanning the past few weeks.
2) Eliminate any keywords that brought in conversions.
3) Sort the report by the number of clicks (largest to smallest)
What you are left with is not a list of keywords to pause, but rather a list of conversion opportunity! You now have a prioritized list of keywords that potential customers are not only searching on, but also finding your ads relevant enough to generate a click.
If a keyword has a large number of clicks but no orders, first make sure that keyword is relevant to your product/service and then take a deep dive into the relationship of that keyword to its landing page. Is the page functioning properly? Is the page relevant, and if so, as specific to the search query as possible? Is your price competitive?
These keywords have proven that they can generate traffic. Make every effort to convert the visitors they bring in. Any increase in conversion rate for these terms will not increase your ROI by lowering cost, but by increasing revenue.
Written by Dennis Hayes(Dennis.Hayes at ChannelAdvisor dot com)