Google Adwords Digital Sales Certification

Which statistic indicates how often a click has led to a conversion?

Which statistic indicates how often a click has led to a conversion?

  • Cost-per-conversion
  • Clickthrough rate (CTR)
  • Conversion rate
  • Converted clicks

The correct answer is:

  • Conversion rate

Explanation: Not all conversions are equal — some are worth more to your business than others. If you assign values to your conversions, you’ll be able to see the total value driven by your advertising across different conversions, rather than simply the number of conversions that have happened.

And you’ll be able to identify and focus on high-value conversions. When you use conversion tracking, you can assign the same value to all conversions of a certain action or let each conversion have different values (transaction-specific).

Here are some other benefits of using conversion values:

  • Better insight: You can measure the total conversion value generated by your campaigns’ conversions. This also helps you track your campaigns’ ROI by using the “Conversion value/cost” column. You can use this data to identify keywords, ad groups, and campaigns that show a high or low return on investment and manually change bids, budgets, and targeting.
  • Smarter bidding: Once you set up conversion values, you can use the target return on ad spend (ROAS) bid strategy. Automated bid strategies automatically set bids to optimize for your performance goals across specific campaigns, ad groups, and keywords. With target ROAS, Google Ads will set maximum cost-per-click (max. CPC) bids to maximize your conversion value, while trying to achieve an average return on ad spend (ROAS) equal to your target.

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Ali Raza

Ali Raza is a Web Developer and Digital Marketing Consultant.

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