Anybody can spend money on Google Ads. But only a small percentage of advertisers earn a healthy profit from their investments in advertising. So, what’s the difference between successful (profitable) and unsuccessful (unprofitable) advertisers?
Unsuccessful advertisers focus on traffic. Successful advertisers focus on conversion. They understand that conversion is what really makes or breaks an advertising campaign.
In this context, we can define conversion as the ability to turn website visitors into customers. If you can convert on traffic at higher rates than your competitors, you’ll not only profit more, but you’ll be able to expand your reach and gain more market share.
Of course, traffic and conversion go hand-in-hand. You need traffic in order to get more conversions and customers. But in the scheme of things, conversion is way more important than traffic. Conversion is where all the leverage is. And to succeed with advertising, you must prioritize conversion over traffic.
You may be wondering, “Why is a conversion more important than traffic?” The answer is that your conversion rate places a limit on your traffic. For example…
- If you have really low conversions … Only a tiny percentage of website visitors are converting into customers, and that means you’re probably losing money on your advertising, and you’ll have to stop or you’ll go broke.
- If you have mediocre conversions …. Only a small percentage of your website visitors are converting into customers, and then you’ll have to “retreat” and find places where you can still earn a profit. Your traffic potential is very limited.
- But if you have really strong conversions … You’re converting more website visitors into customers, compared with your competition. As a result, you’ll have the money to expand your advertising. Essentially, high conversion rates provide the funding to buy traffic.
Here’s the process you should take to create and fine-tune a high-converting advertising campaign:
Step 1: Always Run the Numbers Before You Run Ads
Never pull the trigger on an ad campaign before you run the numbers. You need to know how much you can really afford to get a click, generate a lead and acquire a new customer. Do some “back of the envelope” calculations to see what kind of conversion rates you’d need to have for your advertising to be profitable.
Step 2. Put Your Best Foot Forward
Once you run the numbers, you’ll probably need to make some improvements to your conversion systems in order to make the numbers work in your favor. You’ll want to create a high-converting landing page. You also may need to adjust your offer and pricing, improve your sales/closing process, put upsells in place and create a follow-up sequence.
The important thing is to do this before you buy traffic, so you’ll have confidence you can actually make money from your ads. Always avoid advertising into a “leaky” funnel, because that’s just asking to lose money.
Step 3. Never Stop Testing
Once you’ve got your ads live, that’s really just the beginning.
Now you need to track, tweak and test in order to get your campaign to be profitable. And once your ads are profitable, you should not “set it and forget it.” Instead, you should be continually tracking, tweaking and testing your marketing funnel. This is where advertising gets really fun, because with every conversion improvement you make, you’re giving yourself a raise. Plus, you’re widening the gap between you and your competition, making it harder and harder for anybody to catch up and compete with you.
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