A Web site's conversion rate is inextricably tied to the success and return on investment (ROI) of a company's pay-per-click (PPC) advertising campaign. The more paid search bid prices increase, the more critical a site's conversion rate becomes to simply remain in the game.
There are three PPC advertising challenges related to low conversion rates:
If you're currently engaged in paid search advertising and the keyword price in the vertical market increases, your site's current conversion rate may not support the higher bids necessary to stay in the game.
Bid prices on a keyword set in your vertical market may continue to rise. If you're not currently engaged in PPC, when you finally decide to jump in, you'll already be priced out of the market.
If either of these scenarios apply to you, you'll need the knowledge and a strategy to increase conversion rates in an effective way.
With bid prices in some markets increasing quickly, companies that haven't yet launched PPC advertising campaigns are taking a serious risk. Bid prices could increase to a point where, by the time Retailer X starts experimenting with search advertising, it will be too costly to learn. It'll write off the medium altogether due to poor results and a seemingly insurmountable conversion rate deficit.
Worse, chances are Retailer X's competitors are already engaged in PPC advertising and working to improve their site's conversion rates. When Retailer X gets in the game, competitors' head start may provide them with a strong advantage.
