Conversion rate is the metric that separates profitable campaigns from wasted ad spend. For performance marketers like you, it’s not just about driving traffic—it’s about turning that traffic into sales. Despite investing in targeted ads, many PPC campaigns struggle to convert, leaving marketers questioning their strategies.

Several factors contribute to a low conversion rate in eCommerce PPC campaigns, from improper targeting to poorly optimized landing pages. For instance, a misaligned keyword strategy can drive irrelevant traffic, while slow page load speeds can cause potential customers to abandon their journey before making a purchase. Even seemingly minor details, like ineffective ad scheduling or vague messaging, can derail your conversion efforts.

To make the most of your PPC spend, you need to dig into these elements and refine your approach. This guide will help you identify common issues impacting conversion rates, providing actionable strategies to optimize your campaigns. Whether it’s improving mobile usability, optimizing your keyword targeting, or leveraging first-party data for remarketing, mastering these areas will significantly boost your eCommerce conversions and deliver a higher return on ad spend. But before that, let’s first get to the basics and understand conversion rates in e-commerce.

Understanding Conversion Rates in eCommerce PPC Campaigns

Low conversion rates are common in eCommerce PPC campaigns. The nature of online shopping means many users are simply browsing, not always ready to buy. 

Factors like longer sales cycles, comparison shopping, and even cart abandonment are typical challenges. This doesn’t always reflect poor campaign performance but rather the nature of the eCommerce funnel. 

Conversion rates, especially when it comes to eCommerce, tend to be lower than in lead generation campaigns.

Typical Conversion Rate Benchmarks

On average, eCommerce conversion rates for PPC campaigns hover around 2.35%. For highly performing campaigns, a good conversion rate can rise to 10% or more, but it varies by platform and audience. 

Setting up benchmarks for conversion rates might differ between the ad platforms like Google and Meta Ads. Google Ads tends to see higher conversion rates due to its intent-driven nature, while social media platforms, such as Facebook Ads, may have lower conversion rates, sometimes falling below 1%. Monitoring these benchmarks can help you understand where your campaigns stand compared to industry standards.

Industries with Notable Conversion Rates

Different industries also see varied conversion rates. For example, sectors like fashion and apparel usually have conversion rates closer to 2.3%, while healthcare can see rates as high as 3.1%.

In contrast, high-ticket items, such as luxury goods, tend to have lower conversion rates due to the longer decision-making process involved. 

Having insights about your specific industry and understanding your campaign performance will result in effective decision-making. Tools like Google Analytics (GA4) help businesses accurately understand their conversion rates, offering a clearer picture of campaign performance. With real-time insights, businesses can identify optimization opportunities and adjust campaigns in real-time accordingly to achieve better results and higher conversion rates.

To improve conversions, it’s not just about driving traffic but also about directing visitors to the most effective destination on your site. The landing environment plays a crucial role in influencing user behavior and determining whether a visitor converts or not. 

Now that we have covered the basics, let’s dive into understanding why your PPC ads do not convert and how conversion rates are affected.

Why PPC Ads Do Not Convert? eCommerce Conversion Rate Issues

First things first, let us have a small glimpse at why a dedicated landing page often delivers better results than a general homepage.

Homepage vs. Dedicated Landing Page

When driving traffic through PPC ads, sending users to a homepage is often less effective. A dedicated landing page, tailored to the specific offer, significantly boosts conversion rates by delivering a clear, targeted experience.

One major advantage of a dedicated landing page is the focus. Unlike a homepage that covers multiple products or services, a landing page has a single, focused message. This removes distractions and keeps users on track to complete the desired action.

As you know, users expect consistency between the ad they click and the page they land on. A landing page that speaks directly to their needs reduces friction and increases the likelihood of conversion.

Here’s a quick gist of the same as to why choose a dedicated landing page for your PPC ads: 

While choosing the right landing page is essential, building a page that truly converts requires more than just selecting between a homepage and a dedicated landing page. A well-optimized landing page ensures visitors remain engaged and motivated to complete the desired action. Let’s explore the best practices that make landing pages more effective in driving conversions.

Best Practices for Building High-Converting Landing Pages

A high-converting landing page isn’t just about aesthetics—it’s about creating a focused, engaging experience that aligns with user intent. From the messaging to the layout, every element should work toward guiding the visitor to take meaningful action. Here are some key practices to maximize your landing page’s effectiveness:

Reducing Clutter and Simplifying the Messaging

Keeping the landing page clutter-free is crucial. Considering the possibility of the user getting diverted, keeping it minimal can help with the increase in conversion rates. A more on-point and direct messaging approach will make the user trigger the CTA quickly. 

Listicles or bullet points work well for outlining key features, while the overall design should direct attention to the call-to-action (CTA). A clean, streamlined layout minimizes decision fatigue and boosts user engagement.

Providing Easy and Visible Contact Options

Making it easy for users to reach you increases trust and encourages conversions. Prominently display contact methods like live chat, email, or phone numbers. 

You can even integrate chatbot solutions, which improve user engagement and reduce friction in the decision-making process.

Even with a clutter-free design and strong contact options, a seamless mobile experience is paramount. With more than half of eCommerce traffic coming from mobile devices, it’s essential that your website delivers an optimized mobile experience to retain potential customers and avoid abandoned journeys.

Website Mobile Friendliness Issues

Mobile optimization is critical in eCommerce. As a performance marketer, you’re likely aware that a large portion of your traffic comes from mobile devices. 

Without proper mobile optimization, you risk losing valuable conversions. Shoppers on mobile expect seamless browsing and checkout experiences, and if your site doesn’t meet their expectations, they’ll drop off fast.

Here’s how mobile usability impacts conversion rates and what you can do to improve it:

• Mobile optimization is a necessity: Over 65% of eCommerce traffic comes from mobile devices. If your website isn’t optimized, you’ll likely see lower conversions. Mobile users expect fast load times, clean layouts, and easy navigation. Anything less could push potential buyers away.
• Impact of usability on conversion rates: Research shows that conversion rates on mobile-optimized sites are significantly higher. Users are more likely to convert when the site is user-friendly on mobile. Mobile-optimized checkout processes, form fields, and navigation are key elements that enhance conversion performance.
• Use tools to ensure mobile-friendliness: Regular checks are essential to maintain a mobile-friendly experience. Tools like Google’s Mobile-Friendly Test help identify design or load issues. Testing your site on multiple devices also ensures consistency in the user experience.

After ensuring your website is mobile-friendly, the next critical step is optimizing load speed. Even with a seamless mobile experience, slow load times can cause users to abandon their shopping journey, costing you valuable conversions. Let’s explore how improving your website’s speed can directly impact your bottom line.

Low Website Load Speed

Website load speed is a critical factor in eCommerce conversions. Every second counts when it comes to the user experience. Slow load times don’t just frustrate users—they directly impact your bottom line. Research shows that users start abandoning a page because of the extended loading speed, which makes speed optimization non-negotiable for boosting conversion rates.

Here’s how load speed affects conversions and how you can optimize it:

• Relation Between Load Speeds and User Patience: Studies show that 53% of mobile users leave a website if it takes more than 3 seconds to load. A one-second delay in page load can reduce conversions by up to 7%. Fast-loading sites retain user attention, keeping them engaged long enough to convert.
• Effect on Conversion Rates: According to Google, sites that load in 5 seconds experience 35% higher conversions as compared to the one that loads in 10 seconds or higher. This means slow load times are a direct hit to ROAS (Return on Ad Spend). Optimizing load speed is one of the simplest ways to improve campaign performance without increasing ad spend.
• Tools and Techniques to Improve Load Speed: Tools like Google PageSpeed Insights and Lighthouse help diagnose performance issues. Techniques such as image compression, minifying CSS/JavaScript, and using Content Delivery Networks (CDNs) are proven ways to improve load speeds. Additionally, implementing Google Tag Manager’s asynchronous tags ensures your marketing scripts don’t slow down page load times.

After optimizing your site’s load speed to improve conversions, it’s time to focus on your PPC campaign setup. Even a fast website won’t make up for poorly targeted or misaligned PPC strategies. Let’s explore how proper campaign configuration directly impacts conversion rates and ensures you’re making the most of your ad spend.

Improper PPC Campaign Setup

Improper PPC campaign setup can seriously hinder the effectiveness of your ad spend. Campaign setup mistakes can lead to wasted budget and missed conversion opportunities. Let’s break down some common mistakes and how they affect conversion rates.

• Targeting incorrect geographic areas: If your ads are showing in locations where your product or service isn’t relevant, you’ll see a drop in conversions. Always ensure your geographic targeting aligns with your target audience. Tools like Google Ads’ geographic targeting features help you refine locations down to specific regions or zip codes. Effective audience segmentation, such as using suppression lists to exclude irrelevant traffic, can help reduce wasted ad spend.
• Using broad match keywords ineffectively: Broad match keywords offer reach but can attract irrelevant traffic. Manage this by using negative keywords, reviewing search term reports, and leveraging first-party data to target audiences based on past interactions. This ensures ads reach relevant prospects, even with broad search terms, preventing budget waste on unqualified leads.
• Wrong ad scheduling impact: Running ads at inappropriate times can lead to poor engagement and wasted budget. Scheduling ads based on your audience’s active hours, backed by historical data, ensures better visibility and more efficient spending. Adjusting ad delivery times in line with peak engagement periods can significantly improve your return on investment.
• Misaligned ad messaging: Ad messaging that doesn’t match your landing page can confuse users and lead to lower conversions. Consistency between the ad copy and the landing page experience is essential. This helps ensure that users find exactly what they expect after clicking your ad, which improves conversion rates and reduces bounce rates. Creating tailored messaging for each segment of your funnel enhances user engagement and boosts overall ad performance.
• Choosing inappropriate campaign types: Choosing the wrong type of PPC campaign, such as focusing on clicks rather than conversions, can waste your budget. For eCommerce, it’s better to use campaigns optimized for conversions, such as Google’s Smart Shopping campaigns or Performance Max, which are designed to target users with higher purchase intent. This approach aligns with maximizing return on ad spend by targeting relevant, high-converting audiences.

Moving from understanding common PPC setup mistakes, the next focus is on how your brand impacts conversion rates. Branding goes beyond visuals; it shapes how users perceive your ads and influences their trust in your business. Let’s dive into why strong branding can be a game-changer for your PPC campaigns.

Low Branding and Its Impact

Strong branding is a critical component of successful eCommerce PPC campaigns. For performance marketers, branding goes beyond just the logo or tagline. 

It’s about how your brand is perceived at every touchpoint—your ads, landing pages, and even how customers talk about your business. Effective branding can significantly improve conversion rates, increase customer loyalty, and lower cost per acquisition.

A well-defined brand increases customer trust and loyalty, making it easier to convert leads into customers through PPC campaigns.

• Builds Trust: Customers are more likely to convert when they trust a brand. Branding signals reliability and quality, which is especially important for new customers.
• Differentiates from Competitors: A strong brand helps your business stand out in a crowded market. It distinguishes you from competitors offering similar products or services.
• Increases Ad Effectiveness: Strong branding enhances ad recall and click-through rates (CTR). When users recognize your brand, they’re more likely to engage with your ads.

Using first-party data—collected from users who have previously interacted with your business enhances the effectiveness of retargeting campaigns. By leveraging this data, you can deliver ads that resonate with users’ prior interactions and intent, making them more likely to convert. This personalized approach strengthens the connection with your audience and improves campaign performance.

Insights on Improving Branding Within PPC Campaigns

To boost your PPC performance, it’s essential to align your branding across all touchpoints. This means ensuring that your ad copy, landing pages, and overall messaging reflect your brand’s identity consistently. 

Personalization is key here. Tailoring your PPC Ads based on audience segments helps deliver messages that resonate with specific user groups. 

Consistency in branding from the first click to the checkout process creates a seamless customer experience, which can ultimately drive better conversion rates.

After solidifying your brand’s impact on conversion rates, it’s essential to consider external factors and user intent. Understanding the motivations behind a user’s search helps you tailor your campaigns, driving higher conversions and maximizing your PPC investment.

External Factors and User Intent: Factors for Conversion Rate in eCommerce

External factors and user intent can significantly impact PPC conversion rates. You need to distinguish between different types of intent to target ads effectively and maximize ROI.

Distinguishing between research and purchase intent

Users in the research phase may click on ads but aren’t ready to convert. They’re exploring options, gathering information, or comparing products. On the other hand, users with purchase intent are ready to buy and are more likely to convert. 

For better campaign performance, it’s crucial to tailor your messaging and offers to each stage of the funnel, using strategies like remarketing to re-engage those still in the research phase.

Examples of varying searcher intent

Keywords like “best running shoes” indicate research intent, while “buy Nike running shoes” signals high purchase intent. Identifying and segmenting these keywords is essential to creating effective ad copy and landing pages. 

Tools like CustomerLabs’ audience builder can help target users based on their behavior and stage in the buying journey, ensuring your ads match their intent.

Impact of everyday distractions on conversions

Even with strong purchase intent, everyday distractions—like notifications or interruptions—can disrupt the buying process. This is where strategies like retargeting come into play, bringing users back to complete their purchase after they’ve left the page.

How to increase Conversion Rates of your PPC Ads for eCommerce?

Addressing the issues discussed above will help us increase conversion rates of PPC Ads. First and foremost things that are at your disposal to act upon are:

Landing Page & Ad Creative consistency

Maintaining consistency in ad creatives can relatively create a huge impact on the conversion rate. Whatever you show in the ad creative must be reflected in the Landing Page. The Landing Page must be like an extension of the Ad creative and not something that is totally different.

And in the Landing page, CTA is crucial. Positioning them upfront can make the users take immediate action, which means high conversion. Understanding the objective of the specific ad campaign and developing ad creatives that correlate or interpret each other, will help with driving conversions.

Webpage Performance

Having the web page user friendly will ultimately reduce the possibility of the users getting bounced out, despite clicking ads. The page load speed can aid in keeping the users more engaged and result in conversion.

Implement sturdy designs and optimize overall performance of the webpage to add up to the credibility. Additionally it also helps users seamlessly navigate throughout the landing page towards the desired action.

Fun Fact: If a page takes more than 3 seconds to load, then there will be almost around 7% reduction in conversion rates. 

Proper Ad Campaign Setup

Setup the campaign without any loopholes or gaps by targeting the right audience. Attracting relevant traffic can lead to better conversion which signifies the success of your campaign setup.

Scheduling your campaign when your customers are active can increase your conversion rate, while boosting the overall success of your ad campaign. Keep the campaign setup simple, and power your ad campaigns with high-quality first-party data.

Robust Branding

Gaining the trust of your customers is considered pivotal for conversions. Creating a brand statement that resonates with the audience throughout your campaign from ad creatives to landing pages will greatly increase the reliability towards your brand. Establishing your brand identity by adapting personalization and customer experience will build loyal customers.

High Quality First Party Data

Targeted campaigns built on the foundation of first party data can raise the probability of audience conversions. First party data can help with personalizing your PPC campaigns in a precise manner and targeting the right audience base. This results in an overall increase in Conversion rates. 

Full Funnel Optimization

Optimizing campaigns for the entire marketing funnel is a better way to increase the conversion rate. Personalize and launch your PPC campaigns for the top of the funnel users to push them to the middle of the funnel, and the middle funnel users to the bottom of the funnel. 

Finally, experiment with your campaigns by targeting the predominant bottom of the funnel users who have the high prospects of conversion. Allocating the budget surrounding the entire marketing funnel will incentivize your PPC campaigns to increase conversion rate. 

Focus on Retargeting 

Retargeting the audience who have shown interest towards your brand is a smart way to increase conversion rate rapidly. Launch retargeting campaigns to the purchase intent audience to increase your campaigns’ conversion rates. Through effective retargeting strategies you can drive conversions by bringing in the distracted audience and push them towards conversion in no time. This results in a higher conversion rate, and an overall increase in ROAS.

Conclusion

Optimizing eCommerce PPC campaigns is a continuous process that demands a balance between strategy, execution, and refinement. While industry benchmarks can provide useful context, the real success lies in understanding your unique audience and aligning your campaigns accordingly. It’s not just about driving traffic but about sending the right traffic to targeted, high-converting pages.

By focusing on critical elements—such as well-structured keyword strategies, tailored landing pages, high-quality first-party data and consistent ad messaging—you can enhance user engagement and improve conversion rates. Mobile optimization, fast load times, and clear CTAs ensure that visitors are more likely to complete the desired action, driving better returns on your ad spend.

Book a free personalized demo to discover how we can help optimize your remarketing and boost your PPC performance.