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What is increasing my cost per conversion?

Follower ✭ ☆ ☆
# 1
Follower ✭ ☆ ☆

Hello,

From April - July the cost per conversion has been increasing on a monthly basis. I have figured out that it maybe due to more spend and less conversions (however we have had a lot more clicks but we do not have phone tracking to see how many of those clicks are conversions).

How do I find out the main reasons for the rise in the cost per conversion. Is it because we are in our busiest month? 

Many thanks,

Aqib

1 Expert replyverified_user

What is increasing my cost per conversion?

Badged Google Partner
# 2
Badged Google Partner

There are many possible reasons why this could be occurring.

 

What are you actually tracking as conversions? 

 

If more phone calls are your goal, then why not use call forwarding and call tracking?

Tom

What is increasing my cost per conversion?

Top Contributor
# 3
Top Contributor

Possible clues can come from comparing past and current CTR and Avg Position.

 

Lower CTR usually equals higher CPC.

Often a higher ad position works out worse - higher CPC but conversion rate doesn't change.

 

What is increasing my cost per conversion?

Follower ✭ ☆ ☆
# 4
Follower ✭ ☆ ☆

I am tracking the amount of people that complete an online booking form on out site. We do however get a lot of bookings through AdWords that call in instead.

What is increasing my cost per conversion?

Follower ✭ ☆ ☆
# 5
Follower ✭ ☆ ☆

The CTR and average position have not dropped that much month-on-month so I do not think it is that

What is increasing my cost per conversion?

Top Contributor
# 6
Top Contributor

If your budget is limited, Google should be showing ads for your best performing keywords. If you increase spend, that means more impressions and clicks for lesser performing keywords.

 

At the same time, if it is your busiest month, competition may have changed.

 

What is increasing my cost per conversion?

Badged Google Partner
# 7
Badged Google Partner

I agree with @RobSkelton. Enable your impression share column, and see how much potential impression share you are losing due to rank and budget. Then pour over your search terms report, and identify the top converting underlying exact match search queries. Isolate those terms into their own campaign as exact match KW's, and dedicate as much budget as you can, or is necessary to achieve 100% impression share for that campaign.

 

Add those terms as exact negatives to your other (sorter) campaign, dedicate any additional budget you have there, and continue to follow the process until you have found the point of diminishing return. That should help improve the cost per conversion of your top performing terms, and hopefully increase total conversion volume as well. 

 

Unless there is a concern or issue with using call forwarding numbers, if phone calls have value you should definitely consider call tracking, at least for calls from ads. You can set a higher value for writ conversions, and optimize for conversion value. However, the more tracking you have in place for actions of value, the more effective your optimizations will be.

Tom