Home Google Ads How to Reduce Cost Per Click (CPC) on Google Ads?

How to Reduce Cost Per Click (CPC) on Google Ads?

Another frequently discussed topic on Google Ads optimizations is how to reduce the cost per click. Ensuring improvement in this metric is possible with various optimizations. Let’s take a look at some notes before moving on the relevant optimizations.

Disclaimer: This article is written based on experience and might involve subjective thoughts. The tips in the article do not guarantee that it will provide good results in terms of cost per click optimization. You are responsible for any changes in your Google Ads account.

What is Cost Per Click?: It means, in brief, the payment you make per click. Google Ads does not charge you for displaying ads in the search results; you pay as users click on your ads. In a nutshell, the criteria that determine the cost per click are the amount you are willing to pay -your proposal, your competitors’ proposal, the performance of your advertisement, and the landing page opened as a result of your ad click.

How Much Should You Focus On The Cost Per Click Metric?: In certain sectors, whatever you do, the amount you have to pay per click will be “stiff”. No matter how low your cost per click is, if your clicks don’t provide the conversion, that’s also a problem.

Research on Low-Competition Keywords

Keywords that come to mind first in a specific topic probably have high competition. Presumably, near all of your competitors are bidding on these words.

You can find alternative keywords yourself by utilizing paid/free tools or researching. The thing is that users who search for your products/services reach you. Some part of your target audience may be searching with words other than keywords that come to mind first.

Remark: You can ignore this method if your budget is not so limited as this way you are somehow out of the competition. On the other hand, the keyword you found might not be shown or clicked enough. If you wish, you can test alternative keywords while bidding for the high-competition keywords.

The Harmony Between Keyword and Search Term Is Important!

You can examine the search terms triggered by your keywords by looking at the search term report of your keywords. Although your keyword is pretty compatible with ad text and landing page, triggering your ad with unrelated search terms may lead to decrease your quality score and increase the cost.

A simple example:
Let’s assume your keywords as “wireless headset”. This way, your ad will also appear in the search for “wireless headset care”. Hypothesis: the user conducting this search probably owns a wireless headset and try to find how to have it repaired. Nevertheless, he/she will reflexively click on your ad since it is in the first place, yet exit when cannot find what he/she is looking for.

This situation may cause the system to perceive as “the user did not like the page/the page is unrelated to the user”, or charge you for a click without a sale possibility.

Well, what can we do to prevent this happening?

You can specify the undesired keywords as negative keywords by reviewing term reports on a regular base. For more information, please visit our Negative Keyword Guide For Google Ads article.

Reduce the Restrictions, If Possible

In order for your ad to reach the target audience, you may have utilized some restrictions in it based on criteria like location, time, demography, and field of interests. However, those restrictions will narrow your target audience at the same time. Hence, by doing this you narrow the domain that the system can choose from. Consequently, you might eliminate users who can gain you clicks at very low costs.

Remark: You shouldn’t make any changes to the restrictions if you are not likely to gain quality traffic after you remove the restrictions you set. You can arrange your targeting by comparing the advantages and disadvantages of this situation.

Optimize the Landing Pages

There must be a harmony between the search made by the users and the landing page, as well as that the visitor is satisfied with this page. In respect to this, you can evaluate the exit rate and conversion rate of the users utilizing both the landing page metrics in Google Ads and various analysis tools.

You may take a look at our article Landing Page Optimization Tips which is about landing page optimization.

Use More Specific Keywords

You may consider this as facilitating the user’s work somehow. For instance, as a result of searching the keyword “bag models”, the landing page will be a page where women’s and men’s bags are listed. Alternatively, ask which bag models the user wants to look at on the page that opens. Consequently, the landing page will be arranged accordingly.

In the first option, which lists the bags scratchily, the user will need to filter as male or female. Unluckily, this might be a little user-tiring process.

The latter option, on the other hand, has the user slow down by asking him/her which model to look at before the landing page.

Well, what can be done accordingly?

Instead of the keyword “bag models”, you may prefer “women’s bag models” and “men’s bag models” separately. Caution: the link to which both keywords will lead must be customized. For example, on the page opened as a result of the “women’s bag models” search, there must be women’s bags only. If your platform does not allow this, you may report this issue to your software developer.

Do You Have to Placed on the Top?

The more you aim to be placed on the top, the higher will your CPC be, naturally. You may evaluate the importance of placing on the top according to the sector you are in.

For example, if you are in the plumbing sector, it might be pretty significant for you to be placed on top. Probably, a user with a broken faucet will likely click on the first ad that comes out without questioning in order to solve the problem as soon as possible.

On the other hand, if you manage ads of a second-hand car selling website, you can assume your visitors will do a detailed search before the car purchase. Hence, although your ad doesn’t appear on the top, you will probably get the clicks.

In sum, if you are in a sector with a high degree of urgency, it is significant for you to appear on the top. In other respects, if you are in a sector whose users conduct research in detail, you may not need to bid that aggressively as your potential customers will decide from where to buy the service/product by making a comparison. At that point, the importance of landing page optimization shows up again.

You can find the most efficient ranking for you by testing your conversion rate in different kinds of rankings.

You Can Benefit from Smart Bidding Strategies

Remark: Since “bidding strategies” is a subject itself for a different article, we briefly examine it in this section.

Of course, which bidding strategy you choose for your campaign affects the amount of the cost per click. To get more clicks with affordability, you may consider using the “Maximize Click” option. Yet, bear in mind that the clicks you get can have a low conversion rate since the system will only focus on maximizing clicks.

Another choice you can consider might be the “Maximize Conversion” alternative. Herein, your cost per click may increase, but in the end, you can get conversions with fewer clicks.

Yet another option might be using manual bidding. Although manual bidding is not preferable to the system, if you have enough time and experience, or if you will make optimizations regularly, you can give it a try. By the way, the most important advantage of the manual bid is that you are in full control.

On the contrary, one of the most common disadvantages of the manual system is that you devoid of machine learning technology and optimizing only with human power.

Besides, bidding strategies you may go for are not limited to the above mentioned. Each bidding strategy has its advantages and disadvantages in its way. You can make the best choice you can through testing, researching, and consulting with colleagues.

LEAVE A REPLY

Please enter your comment!
Please enter your name here