What is a Good PPC Conversion Rate in 2022

Technically speaking, a PPC advertising campaign should be a sure thing. If you only pay when people click on your ads, this should translate to an excellent ROI.

In practice, successful PPC advertising is never quite so straightforward. All businesses set out with their own objectives and priorities, but with no real yardstick to measure them against.

Hence, it can be difficult to know whether the conversion rate on your PPC campaign is decent, or falls well behind broader averages.

What is a Good PPC Conversion Rate?

This is the obvious million-dollar question - and a question with no concrete answer. What represents a ‘good’ conversion rate depends entirely on what is considered acceptable or otherwise by the business in question.

But when it comes to the all-round average across all industries and sectors, the figure is lower than you might think - just 3.75%.

This may not sound like a lot, but should at least put the whole thing into perspective. Particularly for those who are aiming for a disproportionately high PPC conversion rate, and paving the way for disappointment.

How do I Calculate My PPC Conversion Rate?

Figuring out what represents an acceptable PPC conversion rate for your business means doing two things. The first of which is to calculate your current PPC conversion rate, which can be done by using the following formula:

ppc conversion

In a working example, if a business generates 10,000 PPC clicks per month and 1,000 of these visitors convert, this equates to a conversion rate of 10%.

After calculating your PPC conversion rate, you then need to work out exactly how much you are making from these customers. All conversions are unique - some high-value, some low-value and some of no value whatsoever.

Technically speaking, you could have a high PPC conversion rate and be pulling in plenty of business from your campaign, though in all instances materialising in the kinds of low-value sales that aren’t really helping.

At the opposite end of the scale, you could have a PPC conversion rate of just 3%, though in this instance all conversions manifesting as high-value sales of epic importance.

Long story short - the actual figure itself is not quite as important as it seems. What matters is how much you are generating from these visits and conversions - i.e. the combined value of the sales, not the number of sales you are making.

How to Drive a Better PPC Conversion Rate

Still, the desire to drive an increasingly superior PPC conversion rate is universal. More sales are always better than no sales, so the figure does at least hold some value.

Building towards a better PPC conversion rate means focusing on a few important tasks. Examples of which include aligning your ads to your landing page copy, conducting ongoing A/B testing, optimising your landing pages for the same search terms as your ads, bringing social proof into your landing page content and so on.

If all else fails, the input of an experienced PPC expert could be worth its weight in gold, ensuring you get the best possible ROI on your paid ad campaign.