PPC: Bounce Rate vs. Exit Rate
Recently, I’ve received more and more questions regarding two important key metrics in the search engine marketing world, bounce rate and exit rate. There seems to be some confusion about the difference between the two, what they actually measure, and how they are valuable tools in a digital marketing campaign. I thought I would use the second installment of my “Back to the Basics” blog to help clarify these mysterious performance indicators.
Bounce rate by definition is the percentage of visitors who land on the website and view only one page (without visiting any other pages) before leaving. For example: Kurt sees a pay-per-click ad which was advertising a wetsuit sale at a local surf shop. He clicks on the ad which takes him to the “sale” landing page. After he reads the page he then leaves the website to go back to Google and start another search. Typical ways a bounce is recorded is by:
• Clicking on an internal link to a page outside of the website
• Closing the browser window or tab
• Simply typing in a new URL
• Clicking the “back” button and leaving the site
• Session-timeout*
*A session-timeout is when a visitor views a specific page, doesn’t look at another page, and leaves the browser idle for a certain amount of time. A commonly used session-timeout threshold is 30 minutes; so once this time limit has been reached a bounce is recorded.
Exit rate by definition is the percentage of visitors who leave the website from a specific page based on the number of visits to that page. The difference between bounce rate and exit rate is that the visitor who exited from this specific landing page may have viewed many other pages on the website before landing on this specific page and then exiting from here. For example: Kurt sees a pay-per-click ad for a local surf shop that just opened. He clicks on the ad which brings him to the home page of the website. He views a few different pages before going to the “sale” page. After he reads the “sale” page he then closes his browser window, hops in his car and speeds to the surf shop.
How to use these metrics:
Both of these performance indicators can create actionable insight, but are used very differently. Bounce rate is important for determining how your landing page might be performing. If you have a ppc ad running and you find that you have a 75% bounce rate for the specific product page which your ad brings the user to, then there is a problem with the landing page. Why would so many users leave a page that was specifically targeted for them? What about the page is preventing them from moving onto other correlated pages within the site? Optimizing the page, multivariate testing, and statistical analysis may help you determine what the root cause and solution may be.
Exit rate is important for determining how a particular page is performing in the sales process. If, as an advertiser, you have mapped out a specific sales (page) funnel, and visitors seem to be exiting from one specific page in that funnel, then you know that that page is problematic and needs to be optimized.
As you can see, both metrics can be powerful tools in identifying specific problems in the user interaction process and help you determine what changes are needed to increase sales and ensure a better return on your ad spend.
Kurt Kaufer
As the cliché goes, a house can’t be built without first laying the foundation. This post is dedicated to “matching options”, a basic pay-per-click concept that can sometimes get confusing to new PPC advertisers. The main goal for advertisers is to match their ads with the most qualified search queries. i.e. The searcher most likely to click on the ad and complete the advertiser’s goal for their website (purchase/sales, leads, newsletter signups, registration, etc…) Google has four keyword matching options that determine which searches trigger your ads to appear. The options were built to help the advertiser control who sees their ads, control costs, and ensure the most targeted and qualified traffic is clicking on their advertisement.
1. Broad Match: This is the most basic option and happens to be the default when a campaign is set up. This option is less targeted than the “phrase” and “exact” match options and Google will run your ads on relevant variations of your keywords, even if these terms aren’t in your keywords lists. Keyword variations include synonyms, singular/plural forms, relevant variants of your keywords, and phrases containing your keywords.
Example: The keyword you are bidding on is, snowboard jackets. Ads may appear for searches including snowboard, jackets, buy snowboard jackets, Burton snowboard jackets, winter jackets, snowboard coats, used snowboards.
Pro: This option allows you to serve your ad to the broadest audience.
Con: It often generates invalid/unqualified clicks and can increase costs.
2. Phrase Match: With this option, Google matches your ad only against keywords that include the phrase you designate specifically in that order. You can designate this by typing quotation marks around the keyword in the Google interface or by simply selecting the phrase match option.
Example: The keyword you are bidding on is, “red coat”. Ads may appear for searches including “cheap red coat”, “buy red coat”, large red coat”.
Pro: This option allows you to narrow your audience and focus your marketing efforts.
Con: If one of your goals as an advertiser is generating brand awareness you are eliminating a large base of searchers from ever seeing your ads. Additionally, if the user happens to misspell a word, or not type it in the exact order, “buy coats red”, then ads would not be served to a segment that really wants your product or service.
3. Exact Match: This is the most specific option and your ad would only appear when a user searches for the specific phrase in that order. You can designate this by typing brackets around the keyword in the Google interface or by simply selecting the exact match option.
Example: The keyword you are bidding on is, [wetsuit repair]. Ad would only appear for searches including wetsuit repair, in that order, and without any other terms in the query.
Pro: This option allows you to target your ad spend as much as possible.
Con: Same as phrase match, but to a higher degree.
4. Negative Match: Negative keywords function as a filter to prevent ads showing to unwanted visitors. This eliminates the amount of untargeted and/or invalid clicks and help control costs.
Example: The keyword you are bidding on is, snowboard jackets. If you add the negative keyword ‘cheap’, you ad will not appear for any searches containing the keyword ‘cheap snowboard jackets’.
As you can tell there is a lot to consider when building your keyword list. In order for your ppc campaigns to be as effective as possible it is a good idea to have a clear understanding of your audience, your marketing and business goals, and your budget well before-hand to ensure you are getting the most effective return on your ad spend.
Kurt Kaufer
