How to reduce the cost of cpc

Ranking ad

The Quality Score is a diagnostic tool that allows you to see how the ads you have entered compare to those used by your competitors. The score is measured on a scale of 1 to 10 and can be checked at the keyword level (for search engine campaigns) and at the ad edit level (for GDN campaigns). A higher quality score means that your ad and landing page are more relevant and useful to users searching for a given keyword than other advertisers.

How to calculate quality score

The quality score for keywords in a search campaign is automatically calculated by Google’s algorithm based on the combined effectiveness of 3 components:

Click-through rate (CTR, or click–through rate) determines the probability of a user clicking on an ad.

Advertising relevance – determines the extent to which an ad matches a user’s intent when searching for a given keyword.

Landing page quality – determines the degree to which a landing page is relevant and useful to a user who clicks on an ad included in a campaign.

Each component is rated with an „Above Average,” „Average,” or „Below Average” status. This rating is based on a comparison with other advertisers whose ads have been displayed using the exact same keyword in the last 90 days.

The ad’s performance is based on a comparison with other advertisers whose ads have been displayed based on the exact same keyword in the last 90 days.

Test the quality of the keywords included in the campaign and then analyze the results. If one of the components has a status of „average” or „below average,” you can make changes that will positively affect the quality of the keyword and thus lower the cost per click.

Take a look at the results.

Keywords

Start by using keywords in the content of your ads. The best places for this are headlines. Try to have one or two fields containing the keywords you included in your list.

If you want to improve your ad’s predicted click-through rate, work on its content. Tailor the headlines, ad texts, and CTAs (call to action) included in the messages. By increasing the number of headlines and texts and varying their content, you increase the likelihood that artificial intelligence will display a message that is relevant to the user and that the user will click on the ad as a result. 

To increase an ad’s relevance, consider the semantics of the content. Consider whether the text of the ads matches the meaning of the keywords and whether it is related to what is included on the page. You can break your campaign into ad groups and then tailor your ads to each group, so you’ll be able to design any needed content more accurately.

To improve the quality of your landing page, examine its functionality, loading speed, intuitiveness, and keyword saturation. You can use precise links for keywords if your site is divided into sub-pages describing specific services or products. As a last resort, you can create a separate page on your site to make this page correspond to specific keywords or keywords from a particular ad group.

To improve the quality score of your image campaign, follow a few simple steps. Start by completing any content that the system allows you to do. Use the available fields for your ad headlines and their texts. While doing so, remember to ensure that your texts take up as much of the allotted space as possible, i.e. use the character limit to the maximum. Try to make your headlines close to 30 characters; your ad texts should contain about 90 letters.

Matching keyword pools in Google Ads campaigns

Another procedure that can help lower the cost of clicks in Google Ads campaigns is to properly match the keyword pool and the keywords themselves.

When operating on a limited budget, our goal is not to display ads for every possible consumer query. We should focus on displaying ads on keywords that have lower CPCs. By limiting the keyword pool, we will eliminate the most expensive keywords, ultimately reducing the overall cost-per-click of the campaign.

However, the keyword pool may turn out to be quite narrow, which means there is nothing to give up. Nothing has been lost, as there are other solutions, such as using more precise keywords. By using phrases that include, for example, the location of a service or product or long-tail queries (i.e., phrases consisting of three or more words), we will compete with fewer advertisers, which may translate into a lower cost-per-click for our campaign.

Exclusionary keywords vs. cpc rates

To avoid displaying our ads in undesirable situations, we should set up a list of exclusionary keywords. Exclusionary keywords prevent ads from displaying when a specific word or phrase is searched. Ads will not be displayed to anyone who searches for that phrase. 

If, for example, you add the exclusionary keyword „free” to a campaign or ad group, the Google Ads system will not display ads in search results for queries with the word „free.” It is a good idea to supplement the list of exclusionary keywords with popular marketplaces, such as „Allegro” or „OLX” and also words that may indicate a user’s intention other than shopping, such as „ranking” or „reviews”.

Optimize campaign under CPC

A frequently overlooked way to optimize click-through costs is to display ads only at certain times. For example, if you run a stationary store that is open between 9 a.m. and 5 p.m., the best solution would be to display ads during a given time slot. The same is true for services offered, such as restaurants or cabs. 

If, on the other hand, the buying process in your industry is long and the user doesn’t make a purchase decision at the first contact with the site, you can act with spite and set the ads to display at times other than those of the competition. For example, by setting your ads between 10 pm and 6 am, you probably won’t get many clicks, so you will pay far less for them. The user will end up in a remarketing list, so you can re-display, for example, a display ad and convince them to buy your product or service.

Additional ways to optimize Google Ads campaigns

If you want to learn more about search campaign optimization, be sure to check out the article titled „Search campaigns – how to optimize them„. You’ll find practical advice on search engine activities and a glossary of the most important terms you’ll encounter when conducting your marketing efforts.

To effectively reduce CPC rates and run a well-optimized Google Ads campaign, take care of the relevance of your landing page and your potential customers’ impressions. While Google Ads CPC alone can increase your company’s profits, the cost of a Google campaign is not the aspect that primarily drives your company’s growth, sales of services and products, and brand recognition.

The cost of a Google Ads campaign is not the most important aspect of the campaign.

Although a lower CPC does not always equate to a more effective campaign (sometimes it’s worth paying more and gaining higher quality traffic), lowering the cost per click is a good starting point for optimization efforts. Campaign optimization is quite a difficult job, and advertising systems evolve daily, making it difficult to keep up with all the changes. If you need help with optimizing or running a campaign, or want to learn more about effective advertising efforts, you can enlist the help of The Up&More Marketing Agency The agency is primarily engaged in the planning and implementation of online marketing activities, which may consist of brand building, search engine advertising, public relations, creating marketing communications, optimizing online campaigns or data analytics.