Conversion ratios are of course, the real Holy Grail of e-commerce. It is probably the most important Key Performance Indicator that tells you if your site is profitable, breaking even, or deep in the red. As such, Increasing ecommerce conversion ratio's is undoubtedly in the forefront of any improvement strategies you may be considering for your website.

If the majority of your traffic is derived from PPC, there are several strategies that could be used to increase conversion ratios and which could yield immediate results. These include, but are not limited to:

Improved CTR of text ads
Higher Placement of text ads on Search Engine Results Pages
More relevant landing pages
A higher quality score

What if you could combine all four of these variables into one easy to implement strategy? Would you? Of course you would! The strategy is available in Google as well as Bing campaigns and it’s probably NOT being used by your competitors. I’m talking about Dynamic Text Ads.

Dynamic Text Ads are ads which are customized to match the terms users are searching on. Because these ads are customized to closely match the terms being searched, they are more relevant and therefore, more likely to be clicked upon. In addition to customized titles and or body text, dynamic text ads can also have customized landing pages, thereby extending the targeted experience for the visitor and placing them exactly on the page related to their search query.

To illustrate how dynamic text works, let’s use the following example:
Let’s say you sell mountain bikes, and you have them in several brands and models. A user searches for “Trek Danube mountain bikes on sale” and your ad pops up in the first page, third position of the SERP as follows:

Mountain Bike Sale
Many models starting from $599.

Conversely, with a dynamic text ad, your ad could read as follows:

Trek Bike Sale
Danube models starting from $475.

Which ad would you click on?

As you can see using dynamic text can help improve the click-through rate (The ratio of the number of times an ad is clicked to the number of times the ad is displayed.) (CTR) of your ads by providing an ad which closely mimics the search query language of the user. Second, by directing visitors to very specific landing pages, again, based on their search query, the visitor is more likely to stay on that page longer and then navigate further down the sales funnel for more information. In one fell swoop you have improved CTR, average visit duration and reduced your bounce rate, three ke y factors which normally lead to improved conversion ratios. As a bonus, by improving these three indicators, you are simultaneously improving your advertising campaign’s quality score, thereby providing an eventual higher placement on the Search Engine Results Pages (SERP).

Higher quality scores will also slowly lead to reduced average keyword prices, providing you with eventual lower advertising costs. And of course, your primary goal of improving your conversion rates will have been met as well.

To find out more about dynamic text ads and how they can improve your conversion rates, feel free to contact us and we’ll be happy to discuss it’s applicability to your site in greater detail.