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If your advertising budget drains too fast, you might be overlooking conversion rate optimization (CRO).
Instead of throwing more money at ads, optimizing your conversion rate can dramatically impact your profitability.
PPC brings traffic, but CRO determines how much of that traffic converts.
Let’s say your business has monthly PPC spend of $50,000:
- You pay $2 per click, bringing in 25,000 visitors.
- Your conversion rate is 2%, so you get 500 sales per month.
- With an average order value of $200, that’s $100,000 in sales.
- After costs, your profit contribution is $20,000.
Now, imagine your conversion rate doubles to 4%:
- You get 1,000 orders instead of 500.
- Sales jump to $200,000.
- Profit contribution skyrockets to $90,000—4.5X more profit!
Or, what if you just wanted to make the same $20,000 profit?
- With a 4% conversion rate, you’d only need to spend $11,111 on ads instead of $50,000—saving 78% on advertising.
Now you can save money OR scale your ads by bidding higher, outpacing competitors, and growing even faster.
See the breakdown over at Conversion Rate Experts.
