Optimize Google Ads Conversion Rates with These Proven Strategies
2024-07-17
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Google Ads are undoubtedly a powerful tool that allows many businesses promote their products or services to people who’re looking for them. But just running ads isn't enough: there are way too many things that can go wrong.
Even if your campaign setup follows all the best experts’ tips and you bid competitively, you still can get fewer conversions than is enough to justify the ad spend. What you need to do in this situation is optimize your Google ads to get the best results for your money.
In this article, we'll cover the most useful optimization strategies that can help you boost your returns and get the results that you’re looking for. Whether you want to spend less on ads, get more clicks, or increase sales, these tips will give you the knowledge and tools to make your campaigns work smarter.
Let's dive in and discover how you can make your Google ads work for you, not the other way around.
1. Track your conversions
This sounds like a no-brainer, but many people actually underestimate the importance of proper conversion tracking for their Google ads’ success.
If you’re not sure that you’re tracking all of your conversions properly, how can you judge how well your ads perform? Without this data, you won’t be able to optimize your campaigns, get more conversions (since you don’t even know if you’re tracking all of them correctly), or use automated bidding strategies, which can be pretty useful for a lot of advertisers.
Here are the main conversion actions you can track on Google:
- Website actions: this includes purchases, newsletter sign-ups, button clicks, or other interactions. You’ll need to set up conversion tracking for your website through Google tag;
- App Installs and In-App Actions, or installations of your mobile apps and actions taken within those apps (like purchases). You can track these actions with Google (e.g. through Google Analytics, Google Play, or third-party app analytics or click trackers);
- Phone calls: you can track calls from your ads or calls to a phone number on your website, including call duration and caller area code;
- Offline conversions: if you’ve got a physical store/office, you can track conversions that start online but finish offline by importing them.
There are two main ways to track your conversions: with and without a Google tag.
For website purchases or sign-ups, you’ll need to add a special piece of code to your site or app. When someone clicks on your ad, a temporary cookie is placed on their device. If they complete the action you want to track, the system will recognize the cookie and track the conversion.
You won’t need a Google tag to track conversions like phone calls, app downloads and in-app purchases, or offline actions – they’re tracked in a different way.
Once you set up conversion tracking, you’ll be able to see detailed reports on how well your ads are turning clicks into actions, like purchases or sign-ups. This data will help you tweak your ad strategy, spend your budget smarter, and get more conversions with Google Ads.
2. Use Smart Bidding
The key thing about Smart Bidding is that it automates your bid management using machine learning. It automatically adjusts how much you bid for your Google ads, aiming to get you the best results based on your goals (like conversions or conversion value).
There are three main Smart Bidding strategies you can use for improving your conversion rates:
- Target CPA (Cost Per Acquisition): it helps you get as many new customers as possible at a cost you're comfortable with;
- Target ROAS (Return On Ad Spend): this one focuses on maximizing your revenue from ads relative to what you spend;
- Maximize Conversions: it automatically adjusts your bids to get the most conversions within your budget. You can also use Maximize conversion value here.
If you use Smart Bidding, your ads will be shown to people who are more likely to take action, which can boost your ad performance without you having to manually tweak bids all the time.
But while Smart Bidding can be a game-changer, it's not foolproof. One thing to be careful about is overspending. Sometimes, Google’s algorithms might bid more aggressively than you'd like, so your costs will go up. This usually happens if the bid strategies aren't monitored closely or adjusted properly.
Another thing to keep in mind is that the goals set for Smart Bidding should always align with your overall objectives and factor in seasonal changes and unique aspects of your business. If you give too much power to Google, you risk bidding in a way that doesn’t particularly fit your campaign or the goal you’re working towards.
So, how to solve this without avoiding automated bidding altogether?
To manage your ad spending wisely while using Smart Bidding, try using portfolio bid strategies with max. CPC bid limits. These will allow you to group several campaigns and set the highest amount you'll pay for each click. It helps you stay within your budget while still letting Google optimize your bids.
Here's how to set it up:
- Go to Tools => Budget and bidding => Bid strategies;
- Create a new portfolio bid strategy and choose your preferred goal, like maximizing clicks/conversions/conversion value, getting a specific ROAS/CPA, etc.;
- Click 'advanced options' to set the highest amount you're willing to pay for a click.
When you use portfolio bid strategies with maximum CPC bid limits, you let Google do its thing while keeping your ad costs under control. It helps you avoid wasted ad spend and makes your ad campaigns more profitable overall.
Just like when using other automated tools and features, don’t forget to keep an eye on how your ads are performing and adjust the limits as needed: this way, you’ll get the best results without spending too much.
3. Segment your audience
Audience segmentation means sorting your target audience into smaller groups based on how they behave, what they're interested in, and other characteristics. This helps you run more personalized ads tailored to specific groups of people, which can potentially increase conversion rates and ROI.
So, segmentation isn't just about organizing, it's also about optimizing. When you segment your campaigns, you can:
- See which ads and keywords are performing best. This helps you focus your efforts where they'll bring you the highest conversion rates;
- Tailor your ad messaging to specific groups of people who are more likely to be interested in what you offer;
- Allocate your budget more effectively by investing more in high-performing segments.
For example, if you sell both men's and women's fitness gear, segmenting your campaigns by gender allows you to create ads that resonate more with each audience segment. You can use different ad creatives, copies, and so on to make sure that your ads speak directly to a specific set of customers.
When you segment your campaigns, you get two main benefits:
- Ad relevance: your ads become more relevant to the people seeing them. This improves click-through rates (CTR) because users are more likely to click on ads that address their specific needs or interests;
- Increase in ROI: because you're reaching the right people with the right message at the right time, you're likely to see higher conversion rates. This means you get more conversions without necessarily increasing your ad spend.
All of this means more efficient use of your ad budget and better overall performance of your campaigns. You can read our previous article about Google ads targeting to learn about the possible options for audience segmentation.
4. Use geo-targeting
The more precise you are with your Google ads, the more likely you are to get more conversions from them. One way to achieve this is by targeting your ads based on location.
Location targeting lets you show your ads in specific areas, making sure the right people see them. By focusing on places where your customers live, you make your ads more relevant.
For example, if you have a pizza delivery service, you’d target ads to areas within your delivery zone. This way, your ads are seen by people who can actually order from you.
Besides just using geo-targeting, you can also localize your ads, i.e. tailor them to the audience you’re aiming for. You can make your ads feel local and familiar to your audience by:
- Incorporating local slang or phrases they use every day in your ad copies,
- Mentioning popular spots or events nearby to build trust,
- Showing pictures or videos of local places or people.
Or you can simply let people know that you’re serving to their area and display relevant business hours, address, contacts, and other information.
This way, you can connect better with the local audiences and boost your conversion rates in specific areas.
5. Retarget
Retargeting isn’t just about bringing back lost visitors; it’s about turning them into paying customers. If you want to increase your Google ads’ conversion rates, retargeting is something you absolutely must do to get those sales and installs.
That’s why you need a Google tag: this is Google’s tool that helps you track what people do on your website or app. It uses small bits of code (aka tags) to monitor actions like when someone visits a page, clicks a button, or makes a purchase.
Here’s how to set up Google tags for your remarketing campaigns:
1. Get familiar with your website's code
You need to start by making sure you understand how your website's code works, since you’ll have to edit it to install Google tags. If coding isn't your thing, consider asking someone with technical skills to help you out.
2. Prepare your audience data
You also must have enough visitors on your website to create meaningful audience segments for your ads to reach. If there aren’t enough users coming to your website and taking actions there, you won’t be able to build worthwhile remarketing lists.
3. Install Google tag
To set up your Google tag, you’ll need to copy the code snippet generated by Google and paste it into the header section of every page on your website (before the closing tag). If you don’t know how to do it, just ask your website’s developer to do it for you.
This snippet will allow you to track website visitors and add them to your remarketing lists.
You can also set up event snippets if you’re going to do dynamic remarketing. These snippets are extra bits of code that track specific actions on your website, like purchases or form submissions. You simply have to decide which pages need event tracking (e.g., product pages, checkout), generate event snippets, and then add them to the relevant pages.
4. Check your setup
After installing Google tag and event snippets, use tools like Google Tag Assistant to check if they're working correctly. You have to make sure they're capturing the right data from your site.
Once the Google tag is installed, you’ll be able to create different remarketing lists based on user behavior. The most common option is creating lists with visitors who viewed specific product pages, added items to the cart but didn’t check out, or visited your site without taking any action.
To create your lists, go to the "Audience manager" in your Google Ads account, click on "+ New audience," and select "Website visitors".
You’ll also need to decide how long you want to keep visitors on your remarketing lists. It could be a few days or even several months, depending on how people typically buy from you.
For users who added items to their cart but didn't finish checking out, a shorter time on the list might be better. That way, you remind them while their interest is still fresh. If someone browsed around your site but didn't make a purchase, a longer time on the list could be useful. It gives you more chances to bring them back when they're ready to buy. Adjust these times based on your customers' behavior and how quickly they usually decide to make a purchase.
When all of this is done, you can get to the next step and start running personalized retargeting ads.
You can create various retargeting lists based on user actions. For example, one list might include people who added items to their cart but didn’t finish their purchase. Another could target those who viewed specific product pages.
This will allow you to customize your ads accordingly to match these behaviors. The more relevant your ads are, the better chance you have of bringing back visitors to complete their purchase.
So, tailor your ads to feel like they’re just for your visitors. For example, if someone checked out hiking boots on your site, show them ads featuring those exact boots. Personalized ads will remind them of what caught their eye and why they visited your site initially.
Also, while you absolutely need to show your ads to users a few times to convince them to convert, you don’t want to overdo it: ad fatigue is a thing, and it can seriously damage the perception of your business. You can prevent ad fatigue by setting a frequency cap: this will limit how often your ads are shown to the same user within a specific time frame (e.g., three times per day).
6. A/B test regularly
A/B testing can be a key to boosting yoru conversion rates as it helps you fine-tune your ads based on what real data shows works best.
Here’s how to do it:
- Test different elements like headlines, visuals, CTAs, etc. For example, you might test two different headlines to see which one makes more people interested;
- Focus on one element at a time to really understand what’s working better. If you change both the headline and the button at once, you won’t know which one made people more likely to click and convert;
- Track important metrics like CTR, conversion rate, CPA, etc. These metrics will help you see if your changes are making a difference;
- Use Google Ads experiments to run A/B tests right within the platform. You can compare two versions of your ad to see which one gets more clicks or conversions;
- Use what works best. When you find something that works better, like a certain headline or image, use it in your other ads. This is how you can stay consistently improving and making your ads more effective.
Regular testing and tweaking based on what you learn from A/B tests help you make the most of your ad budget and get more conversions. You can read one of our previous articles on A/B testing for more insights.
7. Optimize your landing pages
Optimized landing pages are key to boosting Google ads conversion rates because they make it simple for visitors to find what they need and take action.
When your landing page is clear and matches the ad they clicked on, people are more likely to stick around and buy something or sign up. A good landing page also loads fast, is easy to use, and shows customers that they can trust your business. All these things work together to get you more conversions and make your ads more effective.
Here’s what you should pay attention to if you want to get more conversions from your Google ads:
- Relevance: make sure what's on your landing page matches the ad and keywords that brought users there. This way, users will feel confident they've landed on the right page after they click your ad;
- Simplicity: keep your landing page design clean and uncluttered. A straightforward layout helps users focus on the main message and the call-to-action (CTA);
- Speed: your landing page should be fast-loading landing since users are likely to abandon a page that takes too long to load. Use tools like Google PageSpeed Insights to check and improve your loading times;
- Mobile optimization: ensure your landing page is responsive and provides a great user experience on all devices, especially mobile;
- Strong and visible CTA: your call-to-action should be clear, compelling, and prominently placed. It should tell users exactly what you want them to do next, be accurate (i.e. it should correspond to where users will be taken after they click on it), and be visually distinguishable from other elements on the page;
- Trust signals: include trust signals like customer reviews, testimonials, security badges, and guarantees on your landing page. This helps you build credibility and make users feel more sure about the actions they take.
It’s also important to make sure you’re tracking how well your landing pages perform. Your Google Ads conversion tracking and Google Analytics codes should be working properly on all the pages that matter.
And don’t forget about broking URLs: they can be very frustrating, especially when you’re in the process of making a purchase or looking for a specific item. So, check your pages regularly to fix any broken links or 404 errors.
8. Redistribute your budget based on KPIs
If you learn how to manage your Google ad budget effectively, you can significantly improve your conversion rates without increasing it – it’s all about reallocating it correctly.
The first thing you need to do is spot high performers, i.e. the campaigns that consistently bring in customers and at a low cost. Track these metrics to find your winners:
- Conversion rate: this tells you how many people who see your ad actually do what you want them to do, like buy something or sign up;
- Cost per Conversion: this is how much it costs you, on average, to get someone to do what you want. The lower each conversion costs you, the better;
- Conversion Value: this shows the amount of money each conversion brings in. It helps you see which campaigns are making you the most money;
- Return on Ad Spend (ROAS): this shows how much money you make for every dollar you spend on ads. Ideally, you want this metric to at least be higher than 2.0 (this will mean that you get at least twice as much from your ads as what you spend on them);
- Click-Through Rate (CTR): this measures how many people click on your ad after seeing it. This is not directly tied to conversions, but the higher rate means more people are interested in what you're offering. If your CTR is high but the conversion rate is low, this can mean issues with your pricing, delivery, website, etc., so it’s helpful to track this metric;
Based on these metrics, you can identify campaigns that you can spend more money on. For example, you can focus on campaigns with a substantial number of conversions at a lower cost per conversion than in other campaigns.
Allocating more budget to them instead of low-performing campaigns can help you amplify your reach to a proven audience that's likely to convert.
You also want to spend more on well-performing campaigns during peak seasons like holidays or special promotions. This can help you catch heightened consumer interest and capitalize on increased purchasing intent. On the other hand, you can reduce budgets during quieter periods to stretch out your budget while maintaining visibility.
All of this can be easily automated with the help of ConvertBomb’s automated rules, which let you automate budget and bid adjustments based on predefined conditions like your KPIs.
This rule can help you raise the budget by 10% for campaigns with enough conversions and a lower cost per conversion every 3 days. The maximum budget cap allows you to make sure you don't spend too much.
For example, you can set rules to automatically increase budgets for campaigns with a specific conversion rate or cost per conversion. You can also use automated rules to get alerts when certain performance metrics change or you hit a specific ad spend limit.
This way, you won’t miss any significant changes in your ads’ performance since everything will be handled by the AI algorithms.
Recap
In conclusion, running Google ads successfully and getting a lot of conversions from them isn't just about setting them up and bidding high. To get the best results, you need to optimize your ads.
This means tracking conversions, using specific bidding strategies that fit your goals, targeting the right audience, A/B testing, improving your landing pages, and allocating your budget rationally.
This is not an exhaustive list of things you can do to increase your conversion rates. But if you start with the ones we talked about in this article, you can start moving towards the ROI you’re looking for.
Also, if you want to learn about other ways to optimize and improve your Google ads, check out our previous articles:
- How to improve Google ads CTR;
- Top Google ads mistakes and how to avoid them;
- Google ads keywords basics.