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How To Measure Conversions

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#1 sctvlk


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Posted 09 January 2008 - 04:50 PM

I don't have conversion tracking set up, but I do have a lot of PPC data on my campaigns. How do I determine my conversion for keywords.

Thanks in advance for your help.

#2 sctvlk


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Posted 09 January 2008 - 05:01 PM


and ROI

This is the data I do have.


#3 phaithful


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Posted 09 January 2008 - 06:38 PM

Uhm, it would be helpful next time if you put commas (,) between your metrics. Makes it easier to read :)

I'm assuming the data you have is from your PPC console and that a conversion is defined as a sale.

Your conversion rate is:

(# of orders) / (# of clicks)

For example:

If you had PPC campaign that generated 100 clicks resulting in 10 sales:

10 sales / 100 clicks = 10% conversion.

#4 Guest_Autocrat_*

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Posted 09 January 2008 - 07:35 PM

Okay... never really done this (not paying alot of attention to it as it's not my department)...
So please note, all of this is purely my thoughts, and to be regarded as ideas, not suggestions.

You should have figures for;
* (P)Price for Advert/Keyword,
* (D)Number of Displays for an Advert/Keyword,
* ©Number of Clicks for an Advert/Keyword,
* (O)Number of Orders from visitors following Advert/Keyword,
* (V)Value of Orders made by visitors following Advert/Keyword.

From there, it's down to extrapolation.
For starters, divide each item by it's predecessor (thus Orders divided by Clicks, Clicks divided by Displays etc.)
That will give your pairing results, and permit you to see some important results.
C/D pair will show you which Adverts/Keywords are more effective.
C/P pair will show you which ones are costing you more.
O/C will show you the Financial Result for a given Advert/Keyword.

Additionally, you can work over several columns to get more detailed or general information.
OxV - PxC should show you which ones are running at a profitor loss, and to what extent.

So use some common sense and see what figures you can get.

I would guess it is imporatnat to run several different sets of Adverts/Keywords to test for effectiveness.
I would also hazard that certain times may affect the results, and thus permit you to track and tune for more financial efficiency.

Still, as I have said, I'm merely guessing as this is not something I do.I strongly advise you to consult a professional in the field, as well as hooking up actual tracking/statistical analysis tools.

#5 kulpreet_singh


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Posted 09 January 2008 - 10:17 PM

If the orders field you showed above is directly related to the PPC campaign only, then you can measure conversion cost and campaign effectiveness.

However, if you are saying that you have a PPC campaign, and this is your overall total number of orders in general, you cannot attribute them all to PPC - they might have come from other sources.

#6 sctvlk


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Posted 11 January 2008 - 09:32 AM

Thanks everyone for writing your thoughts down for me.

I appreciate your time and help.


#7 sctvlk


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Posted 11 January 2008 - 09:43 AM

I have a question for you kulpreet_singh. How would I measure conversion cost and campaign effectiveness?


#8 phaithful


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Posted 11 January 2008 - 02:32 PM

Conversion cost is:

Amount you spent / # of Sales

So if you spent $100 on your PPC Campaign and that had 5 sales.

$100 / 5 = $20 per sale.

This way you can determine whether or not this marketing campaign is effective or not compared to others, or even if it is ROI positive.

If you can track conversion to the keyword level, you can then see which keyword is performing better or worse.

keyword-1 drives 1,000 clicks, produce 100 sales, and cost $500
keyword-2 drives 500 clicks, produces 50 sales, and cost $50


100 sales / 1,000 clicks = 10% conversion rate
$500 / 100 sales = $5 conversion cost per sale


50 sales / 500 clicks = 10% conversion rate
$50 / 50 sales = $1 conversion cost per sale

So in this scenario, even though keyword 1 drove more traffic, more sales, and had the same conversion rate... keyword-2 was by far more effective because it costs you much less per sale.

Edited by phaithful, 11 January 2008 - 02:34 PM.

#9 sctvlk


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Posted 14 January 2008 - 10:51 AM

Thank You!

#10 Thejspot


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Posted 16 January 2008 - 03:46 AM

If you're serious, you need to put Google Analytics on your site....

AND you need to buy yourself a couple of unique free call numbers.

Analytics will show you what keyword, from what campaign, took a customer to what page who then called your unique number and bought something off you.

If you want to know seriously how to measure conversions and have enough data to make changes thats pretty much how far you have to go. It's not much, and it's not that expensive.

Analytics is free within your AdWords account (just click on the analytics tab) and a phone number cost nothing.

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