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Keyword Positions & Conversions - Theory

by billyo
2 replies
  • SEO
    • |
Good day -

Let's say I have a keyword in position 4 on average that receives 35 conversions / month and I spend $700/ month on that keyword.

If I was to increase my bid to $1400 - theoretically - shouldn't I receive 70 conversions?

Why or why not?
#conversion #conversions #keyword #positions #theory
  • Profile picture of the author arpitagarwal82
    Say by increasing your budget for targeted keyword, you increase the the clicks (and hence conversions). In theory this will work.
    But
    There are several other factors that will come into play. May be there is a saturation level in conversions, or there is not enough traffic.
    The only way to find out is by doing it.
    If your ROI is good you can give it a try, or better increase your spending budget gradually and see if conversions increase in same ratio or not.

    Or better try targeting long term keywords which are closely related to your converting keywords.
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  • Profile picture of the author drewfioravanti
    Ad spend and your bid amount are not the same thing.

    But, if you doubled your ad bid, that does not necessarily mean you will receive more clicks and conversions. It is likely that you will increase at least one of them.

    It's faulty logic as there are a number of different factors that go into the whole equation.

    You can bid yourself to the #1 spot, but more than likely your conversion rate will go down. Will it go down to an unprofitable rate? Possibly.

    I have ads that convert at the highest rate in the 5th position. I've been in them all and the 5th position is the best, as far as return on investment, conversion rate and profitability.

    I mean, you know what you numbers should be: for example, for every 100 clicks, I get 40 leads and 15 sales (making these numbers up). So, if I bid into the top position, I will get 1000 clicks. So I should get 400 leads and 150 sales. However, it costs 3X as much per click. Also, now I am getting 250 leads and 75 sales....

    So, instead of spending $1 per click and getting 100 clicks with a $100 ad spend and a conversion value of $10, making $150 or $50 profit, I am spending $3 per click and getting 1000 clicks with a $3000 ad spend and a conversion value of $10, making $750 or a $2225 loss.
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