When setting up a bid strategy in Search Ads 360 and your customer’s main business goal is to determine the time it takes for a user to purchase a pair of socks after clicking on an ad, the important metric for them to follow is conversion delay.
- Target return on ad spend (tROAS)
- Target cost-per-acquisition (tCPA)
- Learning period
- Conversion delay
The correct answer is: Conversion delay
Explanation: In the context of Search Ads 360, most clicks do not lead to immediate conversions. Understanding the conversion delay – the time from a click resulting in a conversion – is crucial. This delay is significant in accurately gauging conversion performance.
The conversion delay metric reveals the time taken for clicks to transform into 80% of your online conversions. It’s essential to know the duration between a user clicking on your ad and completing the purchase, as this impacts the data in your account.
Conversion times can vary; sometimes they occur rapidly within a day of the click, but often, they can be reported up to 90 days later, depending on the chosen conversion window. This knowledge helps in making informed decisions about bid strategies and understanding customer behavior more effectively.
Chapter 10: Measure Bid Performance in Search Ads 360