If you have been advertising on Google Ads over the years then you must have noticed the Cost Per Click (CPC) has gone up significantly and for some businesses, it is becoming unsustainable.
In this post, we have tried to cover in detail how to reduce Google AdWords cost per click so that you can continue to advertise and keep your budget under control.
It is important to analyse your competitor’s Google Ads budget when you think of reducing your CPC cost. The more information you have about your competition the better you can plan to minimise your cost-per-click bid.
Reducing the cost and keeping your conversion is a very creative task and to get the best result, it is recommended that you work with a reliable Google Ads consultant.
What is the cost-per-click (CPC)?
In simple terms, your cost-per-click (CPC) on Google Ads is the amount you’re paying each time somebody clicks on your ad. There are a number of factors that influence your CPC. These include your keywords, competition, quality score, landing page experience etc.
How to decrease Google Ads CPC cost
- Track cost & ROI first
- Pause non-performing campaigns
- Use long-tail keywords
- Minimise generic keywords budget
- Lower bids where possible
- Add negative keywords
- Boost quality score
- Target 2nd or 3rd position
- Create compelling ads, Extensions & landing page
- Create a good campaign structure
- Try automated bidding with target CPA
- Think beyond Google Ads
Track cost & ROI first
If you run a flat Google Ads campaign without monitoring the ROI then it’s time to stop your ads and take necessary actions to build data and conversion-driving campaigns where you can track the spend and return.
The best way to reduce the CPC cost of Google Ads is by implementing conversion tracking and building campaigns with Google’s best practices.
If your current Google Ads management agency is not able to provide you with an ROI report then you may consider changing your provider.
You should regularly check how much revenue you’re getting from Google ads. This procedure will allow you to ascertain the success of your CPC strategy. It can be difficult to identify ways to improve the campaign if there is no regular measurement of conversions and sales that result from the campaign. In the event that this happens, then you will lose a considerable amount of ground to your competitors.
The following are some recommendations to build a data-driven Google Ads campaign to reduce the CPC cost:
- Build Ads campaign with a heavy focus on revenue and your core business model.
- Do not run ads until you have conversion tracking set up and working.
- Set up highly optimised campaigns as per the hierarchy of your business allocate budget accordingly and take action based on performance.
- You must monitor your daily, weekly, and monthly data and apply necessary changes based on the learning and conversion.
Google Ads has become more expensive than before and it is important to learn the art of allocating the right budget for Google Ads to get the best return and minimise the cost.
We have reduced the cost per conversion by 45% for clients. We believe that Google Ads is still the go-to PPC advertising platform and as we focus heavily on data, we have managed to achieve satisfying ROI for clients. Enquire now if you need help.
Pause non-performing campaigns
Pause or take action on any non-performing Google Ads campaign to decrease the CPC cost.
Google Ads is not about “Set and Forget”, you must monitor your campaigns, AdGroups, Keywords and Ads regularly and if you find any specific campaign just draining your budget with limited to no conversion as per the minimum expectation then either you think of optimising or pausing it.
Use long-tail keywords
Most advertisers intend to focus on the primary keywords and often they are more expensive. By introducing long-tail keywords you will be able to reduce your bid and still get targeted traffic to your website. You can use Google’s keywords planner and prepare a list of keywords that you can add to your campaigns.
If you aren’t currently bidding on any long-tail keywords in your account, you should consider doing this as soon as possible! The reason for this is that long-tail keywords have a much lower search volume, so there is less competition with the bids when compared to other generic keywords. Long-tail keywords are also more specific and generally have a higher chance of getting a conversion.
Minimise generic keywords budget
Keywords that are generic generally cover a wide range of search intent and hence you have some irrelevant search triggering your ads. While Google is getting better with AI and generic keywords are doing much better these days than ever before it still has the potential of wasting your budget if not monitored well.
In most cases, generic campaigns and keywords generate the highest number of clicks but if they don’t translate into conversions then you should take some action.
- You may reduce your bid/budget but continue to run to get some conversion and have a strong brand presence.
- If you are on a tight budget and if they are just draining your budget then you may pause them.
- You may wish to use Target CPA for generic campaigns to reduce your CPC cost as AI can do a much better job to show your ads to the most relevant users.
Lower bids where possible
Lowering your bids can be a wiser action to minimise the increasing cost of Google Ads.
If you are feeling the heat of higher CPC cost then most likely your competition would be in the same boat.
You can reduce your bids with caution without harming the ad’s position or the number of impressions it can get. If you will act wisely then you may end up with a better-performing campaign with lower CPC cost.
Add negative keywords
If you have more generic keywords in your campaigns then you may need to have a greater negative keywords list to ensure your Ads don’t show up for irrelevant searches.
When you are wondering how to reduce Google Ads cost per click then you can take action on the negative keywords list immediately if you find that your Ads have been shown for irrelevant searches.
Boost quality score
By boosting the quality score of your keywords, you will ensure the system can do a better job of getting more clicks at the least possible cost.
Target 2nd or 3rd ad position
If you go aggressive with your bids to gain top ranking in Google Ads, it’s obvious that you will pay more. The process can drain your budget quickly.
If you are limited by budget or interested in reducing the CPC of your keywords then it may be wiser to target 2nd or 3rd position and make your ads more compelling so that users will still be interested in clicking on your ads.
Create compelling ads, extensions & landing page
By creating catchy ads, you can still get quality clicks and keep the position of your ad a bit lower.
You should also make use of various Ads extensions and improve the landing page experience as they will help you to boost the quality score.
Create a good campaign structure
If you would like to monitor your comparison in a more effective way then you must create a good campaign structure.
A good campaign structure also helps you to show relevant ads to get quality clicks.
Try automated bidding with target CPA
There are many case studies which has indicated that machines (AI) can do much better than humans.
Before you can rely on AI and Target CPA, you must still build a powerful Google Ads campaign to see the optimum result of reducing the CPC cost.
In a more competitive niche, targeting CPA can be an effective bidding strategy.
Think beyond Google ads
Google Ads is indeed one of the best CPC advertising platforms in the world but at times it can be expensive and hence it’s worth considering other channels too.
Invest in SEO
SEO can be very effective in any niche. There are a few factors businesses are worried about in general about SEO. First, the results are not instant and they are not guaranteed as it is impacted by various factors. It is a long-term strategy and results are only visible after several months of starting the campaign.
One of the major trust issues between digital agencies and businesses is that most companies are over-promising and have less delivery.
Now, let’s talk about the positive.
SEO can be the most powerful tool provided it is done well and done with care and passion.
Our founder says “Google Ads can run your business but SEO can sustain your business”.
It is important to note that quality SEO is expensive, but you can expect higher returns on your investment if done well, which will affect your business finances in a positive way.
We can help you achieve this goal by making your digital marketing campaign stronger. We would like to see you smile when you realise that your SEO campaign has allowed you to sustain your business in a more cost-effective way.
Use Microsoft Ads
While Bing has a much smaller market share as compared to Google there are not many advertisers on Bing and the competition is a lot less.
Getting started with Bing Ads is easy, you can export Google Ads campaigns to Bing Ads and apply necessary changes and you are ready to go.
Should you stop advertising on AdWords?
Google AdWords is one of the most powerful tools for advertising for businesses in Australia and worldwide. Due to its global reach, the tool has cemented itself as one of the best and most convenient digital advertising mediums. Therefore, the answer to your query on whether you should stop using Google AdWords is – No.
You may need to pay more to get the required conversion when you compare your cost a few years back. Getting a proper return on investment (ROI) can be challenging for some. But running a smart and creative campaign can still help you greatly to earn a profit.
Digital marketing, particularly Google Ads is not set and forgotten. It is crucial that you track your marketing investment and take appropriate action. If AdWords performance is expected then planning for alternate strategies is a must.
Need help to reduce Google Ads budget?
We can help you reduce your Google Ads budget and make it more profitable.
Google AdWords is one of the most commonly used online advertising platforms. Since Google has an extensive advertising network, it has made it easier for businesses to use Google Ads to have their advertisements spread over a large network.
But in recent years, many small businesses are facing difficulty maintaining their financial standing, as they are facing difficulty getting a decent profit. This is because the cost per click (CPC) is increasing by the day as more businesses try to compete and it has pushed the price very high for the various business types.
On the other hand, Google keeps changing their system and recently they are pushing heavily on automatic bidding which can be very effective for some but it can drain the budget for others. For many small businesses advertising on Google Ads may be out of reach. Google still allows manual CPC strategy but it may have limited impact in a competitive industry where others setting auto bids or setting the CPC so high.
If you are looking for a Google Ads expert to manage your campaign then you have come to the right place. We provide quality service at an affordable price, Check out our Google Ads packages.
