It’s fascinating to see the latest insights from nexus-security’s 2022 Google Ads & Microsoft Ads Benchmarks report, particularly the finding that average conversion rate (CVR) has dropped year over year for almost every industry except Arts & Entertainment.

Conversion rate is essential for paid search success, so understanding this decline and how to counter it is crucial. Let’s explore some potential explanations for the CVR dip and strategies to keep your search ads performing well.

Understanding Conversion Rate

Conversion rate is the proportion of users who click your ad and then complete your desired action, such as a form submission or purchase. It goes beyond “surface-level metrics” by encompassing the ad copy’s effectiveness, the search query’s intent, and the landing page’s performance.

While many focus on the landing page, I see CVR as the interplay between intent, the ad, and the destination. A good ad with a poor landing page or weak search intent will negatively impact your CVR.

Deciphering the CVR Decline

The widespread CVR decrease across industries is concerning. While pandemic-related disruptions likely play a role, I believe other factors are at play. Let’s consider some possibilities:

1. Increased Consumer Research

The report highlights this aspect. Rising economic pressures and overwhelming choices might be prompting users to research more before committing. This aligns with the overall CTR increase as users explore multiple options before converting.

2. Potential Dip in Commercial Intent

Lower overall commercial/transactional intent could be another explanation. These keywords, such as “best IT companies for small business” or “IT service consult,” indicate buying intent. It’s possible that this intent is generally lower due to various factors influencing buyer behavior.

3. Impact of Broadened Match Types

One theory centers around Google’s push for advertising “simplification” through automation, particularly with match types. The 2021 match type expansion, while beneficial, might have lingering effects. The broader reach limits control over triggered search terms, making it challenging to manage negatives, especially for single-keyword ad groups.

4. Reduced Search Term Visibility

Limited visibility in the search terms report, which now displays fewer terms, could also contribute. This makes adding negatives tougher as not all triggering terms are visible.

5. The Rise of Performance Max

Performance Max campaigns, while seemingly about consolidation, exemplify increased automation. While convenient, they cede significant control to Google’s algorithms. Google’s “trust us” approach might raise concerns given their reliance on advertiser spending.

While not suggesting Google intentionally misdirects ads, the reduced advertiser control over intent-product alignment might contribute to the overall CVR decline.

Strategies to Boost Your Google Ads CVR

Despite external factors, there are actionable steps to enhance your PPC conversion rate:

1. Optimize the Entire Customer Journey

While the digital landscape evolves rapidly, core CVR principles remain relevant. Aligning intent across the ad and landing page is crucial, but optimizing the entire user journey is paramount. Map out the journey, gather customer insights, and identify touchpoints, pain points, and drop-offs.

2. Explore Top-of-Funnel Offers

Traditional landing pages aim for quick action, but with more cautious buyers and numerous options, a longer decision-making process is likely. Consider top or mid-funnel offers like ebooks or comparison tools to cater to extended research phases.

3. Keyword Prioritization by Intent

Focus on the intent behind your target keywords. High-intent keywords, though competitive, deserve significant optimization effort as they directly impact click and conversion probabilities. Monitoring the search terms report for negative keywords helps refine targeting and minimize irrelevant traffic.

4. Leverage Ad Copy Variations

Compelling ad copy significantly impacts CTR and overall performance. Employ multiple variations to discover what resonates best with your audience and eliminate underperforming ones based on CVR. Google’s Responsive Search Ads provide flexibility in headline and description testing.

5. Landing Page Optimization

Landing page optimization remains crucial. Align the page’s copy and intent with your ad copy and target keywords. Ensure a clean design, easy-to-understand content, and an appropriate amount of information based on the offer’s complexity and user intent.

6. Choose Appropriate Bidding Strategies

Automated strategies like Max Conversions, Target CPA, and TROAS leverage machine learning to optimize for your goals. These strategies prioritize serving your ads to users with higher conversion potential while adhering to your budget.

Recapping CVR Improvement Steps

Numerous variables contribute to industry-wide averages. Economic uncertainty, shifting consumer behavior, and Google’s evolving platform make it challenging to pinpoint a single cause. However, individual CVR improvements are achievable. By strategically focusing on the actionable steps outlined above—optimizing the customer journey, incorporating top-funnel offers, prioritizing keywords by intent, testing ad copy variations, optimizing landing pages, and utilizing the right bidding strategies—you can navigate these complexities and enhance your campaign performance. Paid search, with its interplay of intent and competition, rewards those who adapt and methodically improve their approach.