Rule of thumb for conversions?

August 28, 2007 on 6:58 am | In Questions and Comments | 4 Comments

Tony,

Can you give us a rule of thumb for what kind of conversion rate you look for on your ads?  Obviously that will vary greatly based on product type, ad network, etc.  How about an example for Google and Amazon together?  Click through rate based on a specific product ad and a conversion rate on the Amazon side?  I’ve got several small campaigns running and would like to optimize them but right now I don’t know if my ads are performing horribly or pretty good!

Korak

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  1. Korak,

    The conversion rate is the wrong focus, especially for a program like Amazon.com. If I said X% CR for selling books on Amazon is what you are looking for, how do I know if your ads are generating – on average – higher or lower commissions per conversion than I expected. You don’t want to close a campaign with a low conversion rate if is generating a lower number of conversions, but those conversions are for multiple books, or expensive tomes, because the campaign could be profitable even with the low CR. Conversely, you might have CR that meets the X% standard, but if your ad tends to generate single orders for low priced items, it could still be losing you money.

    Remember, the bottom line is… well… the bottom line. So the short answer is, monitor your RPC, not your CR. Profitability is the only standard that really matters.

    Tony

    Comment by Administrator — August 30, 2007 #

  2. Korak, I moved your second post – since it is in regard to your first question – to this discussion thread. See below;

    Tony,

    What I mean by that is, if I have an ad that for 3 different keywords has a click through rate of 20%, 10%, and 5%, does Google rate it as the average click through rate for its ad-serving or does it look at the individual keywords and figure them out for each search request? I’m afraid it is the average in which case I really need to take a look at which keywords I can get rid of to not drag down my best ones. Do you create separate ad groups with identical ads for high-clickthrough keywords vs. low-lowclickthrough? Seems like it might be the way to go… What do you do Tony?

    Sorry about asking so many questions…

    Korak

    [Korak's original post was moved to this thread by Administrator]

    Comment by Administrator — August 30, 2007 #

  3. Korak,

    If you are talking about CTR, no one knows for sure how the Google Algorithm works, so I can’t say I know definitively that you should group keywords by performance. As of today, I actualy think it probably doesn’t matter much… but at the same time, I still seperate some of my highest performing keywords into their own ad groups. It definitely won’t hurt, so why take the chance, right?

    Tony

    Comment by Administrator — August 30, 2007 #

  4. Korak,

    I’ve been trying to get up and running with a web site for Amazon, as my ads were pulled from Yahoo as per our last conversation. Don’t know if this method will work, but I hope to finish the site this weekend and give it a test drive. I have not had any success signing up with other affiliate networks, Clickbank excepted. Clickbank has a lot of cheesy products I don’t want to promote, but a few worthwhile to try, and they are easy to sign up with. The others want a website w/ 5000 (incenta click) to 10000 (Affiliate Fuel) unique visitors a month. Building the website is more to satisfy those requirements that Yahoo’s. Actually, I closed down my Yahoo account!! As you said, F’em :)

    Anyway here are a couple free thoughts on this thread…probably worth exactly that.

    1. Take another look at Chapter 9, Performance Monitioring and Tuning. Sometimes when we get away from the material a while we forget key parts. IMHO, this is a meaty chapter, spot on for your question.

    2. I have been concentrating on products in Amazon’s lineup that have high conversion rates, at least those reported by Amazon. For example, one product I put on my site Amazon says 73% of people who view that page purchase that product. I’m sure you’ve seen that stastics part of their pages.
    Now that’s awfully high, but I’m thinking, most of those people logged into amazon to buy a certain product, searched for it, came up with that page, and bought. You and I have to go through a couple of more hoops than that, and should not expect as high a conversion rate as Amazon gets on its own site. But, I’m counting on it being very high once I get them to that page. I have been very conscious in designing a site, and choosing keywords that target people as closely as I can to the product I want to promote.

    For example, you said in our last conversation that you were sending people to a specific products page. That would be the way to go, in my opinion… better targeted. I have seen some awful attempts by obvious associates pick a key word for say, a specific model of a flat screen TV, and send the clicker to a list of over 150 flat screen tvs from a search result. That person has to have a horrible conversion rate. The person that clicked wanted that specific model, not 150 to choose from. The person who put that ad up probably thought of a shotgun approach…. well if they don’t buy that model, they night choose another. Bad tacktic… I think….

    I would be interested, in vague terms of course, how targeted your keywords are…specific to that product if you send them to that product’s page? and, how is your conversion rate compares with the “customers who viewed this page bought” statistic on Amazon.

    Comment by D_Handley — September 1, 2007 #

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