Vicky manages the Google Ads account for the business, RelicsComics. Vicky focuses on improving the mobile conversion rate (mCvR) while everything else remains the same. What changes can RelicsComics expect to see in their Google Ads account if Vicky is successful in increasing the mCvR?
Clicks and revenue increase.
Conversions increase while revenue decreases.
Conversions decrease while revenue increases.
Conversions and revenue increase.
Explanation
Analysis of Correct Answer(s)
- Conversions and revenue increase: This is the correct answer. The mobile conversion rate (mCvR) is calculated as (Conversions / Clicks) * 100.
- If Vicky successfully increases the mCvR, it means a higher percentage of mobile users who click on an ad will complete a desired action (like a purchase).
- The problem states that "everything else remains the same," which implies that the number of clicks and the average order value (AOV) are constant.
- Therefore, a higher conversion rate applied to the same number of clicks will directly result in more conversions.
- With more conversions and a constant AOV, the total revenue will also increase.
Analysis of Incorrect Options
- Conversions decrease while revenue increases: This is contradictory. If AOV is constant, revenue cannot increase while conversions decrease.
- Conversions increase while revenue decreases: This would only happen if the AOV dropped, but the scenario specifies that other factors remain the same.
- Clicks and revenue increase: Improving the conversion rate is about optimizing what happens after a click. It does not directly cause an increase in the number of clicks. Clicks are a measure of traffic, while conversion rate measures the efficiency of that traffic.