Report Says Retail Paid Search Conversion Rates Dropping
When you think about paid search advertising on a search engine like Google, Bing or Yahoo do you care about how much is being spent there in total or are you focusing on your conversions?
Most marketers will say conversions rule the day for obvious reasons. That’s why a recent study from IgnitionOne is interesting in that it shows a Q3 trend of increased spend on paid search by the retail sector in particular but a significant decline in conversion rates. This is good news for the engines on increased revenue but will that be sustained if conversions are not taking place? Here are the numbers from the report (AOV is average order size).
There are plenty of reasons why conversions may be down in this area but the most obvious one is that paid search advertisers struggle with compelling landing pages. It is one of, if not the most, critical components that cause searchers to eventually convert into real leads.
So why the disconnect? If this is such an important element in the success of any online campaign, be it a paid search effort or some other inbound marketing technique that attracts a potential customer to a web presence, why is there more failing than succeeding in converting visitors to customers?
What do you see as the most common shortcomings in landing page optimization? Can this trend in conversions be about the overall effectiveness of paid search or is it more of a commentary of how much help most need to master this important online marketing concept? Or is it simply that people are looking but don’t have the money to buy?
What’s your take?