The best way to explain this is by using an example. We will use an example where you are paying for a keyword in a PPC campaign such as Google Ads. A high bounce rate means that most of the visitors you are paying for are a waste of money since they come and leave right away.

This example will show how that is not true.

  • Let’s say you have a very high bounce rate: 95%.
  • And every month you pay $1/click and get 400 visitors.
  • That costs you $400/month or $5,000/year.
  • And you get 20 people to the website per month which is 240 per year.

Of those 20 visitors you have a 5% conversion rate.

  • Meaning, each month only one person fills in your contact us form to make an inquiry. Therefore, you get 12 inquiries each year.

Of these 12 inquiries you have 25% turn into sales. That would be 3 sales.

  • A sale is worth $5,000 in profit not including the ad cost.
  • You may want to increase the profit by considering the lifetime worth of a client – not just the first sale
  • In any case, since you had 3 sales, you made $15,000 profit
  • $15,000 profit which cost $5,000 a year for ads. You came out with $10,000 profit after paying for the ads.

Therefore you want to keep this keyword even though it has a very high bounce rate.

Use your own numbers to check your keywords.

Check your hight bounce keywords to make sure that are increasing your profits.

That is not to say you shouldn’t try to improve the results of those keywords that are improving your profits. Adding negative keywords can reduce the number of irrelevant clicks you pay for.

Another strategy tor reduce low quality traffic is to write ads that filter out non relevant searchers. This can also inadvertently reduce your click through rate. Which may increase the bids you need to get traffic. Therefore you need to test the different strategies you use to improve the results of your campaign.

Need help? Contact us for a free consultation.

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