9 Tips to Optimize CPC in Google Ads (Updated)

How to Optimize CPC in Google Ads

When running Google Ads, the common goal of campaigns is usually to optimize the price or the number of leads. This is not wrong, but besides that, CPC is also an indicator digital marketers need to consider in the optimization strategy because we are paying the cost per click.

With a limited budget, finding ways to maximize clicks in the inlet funnel and minimize CPC is also an objective to be examined alongside CPL or lead count.

Here are 9 basic suggestions for how to test and improve CPC in Google Ads. Find out with KnowInsiders!

1. Optimize Quality Score

Quality score is one of the introductory concepts when running Google Ads. KnowInsiders believes that anyone who has had hands-on experience with actual campaigns is quite familiar with this 'score'.

Here are ways to improve your quality score:

Improve ad relevance – write for machine readers

The relevance between the query keyword and the ad model will directly affect the quality score, so one of the most practical ways to optimize it is to clearly 'structure' the ad groups.

Let's break down keywords into groups of keywords with the same topic, avoid an ad group that is too large or contains too many different subgroups. This structure is called SKAGs (single-keyword-ad-groups) – focus on 1 single keyword/ 1 adgroup.

With the condensation in the keyword groups, businesses will breathe easier in ensuring the relevance between the customer's search behavior and the displayed ad text. At the same time, it is easier for businesses to track the effectiveness of each keyword group on Google Analytics.

Optimize click-through rate (CTR) – write ads for readers

To optimize CTR, the 'bridge bait' - the way to reach and attract the target audience is the key factor. When writing ad text for Google Ads ads, you can experiment with the following:

• Test different CTAs

• Include benefits and promotions in your ad – for example free shipping, limited sales and use these details to ‘differentiate’ from ‘similar’ competitors

• Use 3rd party tools to study how your competitors are doing and doing it differently

• Use extensions to maximize content delivery and give more compelling reasons to target audience.

• Continue to conduct A/B testing to find the optimal approach

• In addition, businesses should stop keywords that have a CTR lower than 1.5% or do not bring any conversions!

Enhance your landing page experience

We are all aware that the quality score is influenced by the user experience on the landing page. But 'experience' is too vague; what aspects do businesses need to focus on if they need to start adapting?

Don't let management or business judgment color the end-user experience. They might know more about the customer and the industry, but they might also be a little "information-greedy." Offer advice and cautions to make sure your landing page is created with maximum conversions in mind, whether you're an internal team or an outside agency.

To optimize the customer experience on landing pages for Google ad campaigns, businesses can:

• Use a clear, consistent message with the ad text – make sure the promises mentioned in the ad text are found or consistent across the page content

• Create a responsive ad text experience with content that drives conversions. Consider their inquiry needs, concerns, and barriers in their decision. Landing pages from competitors can be useful in this case

• A/B testing – test different CTAs, headlines, offers, and structures to find the optimal approach

• Increase authority on the page – for example, include customer reviews or testimonials to stimulate engagement and conversions. The more professional, reputable the landing page, the more likely it is to convert

2. Take advantage of long-tail keywords when advertising Google Ads

Focusing on keywords with high search volume can boost CPC because of the harshness of competition. Long-tail keywords, although the search volume is lower, at the same time also have their own advantages:

• Less competition, fewer bids, resulting in lower CPC

• Long-tail keywords are often heavier on ‘intent to buy’ and carry a higher chance of conversion. Because now the target audience is often very specific in what they want and the rest is just looking for the answer 'where to buy' based on the criteria included in the keywords used!

Incorporating long-tail keywords in the ad group also contributes to improving the relevancy of the ad. And if possible, combine with 3rd party software to simplify the process of searching and creating keyword lists! Or do not take advantage of data from SEO activities, this is also the clearest reference on how to 'query' information of people who have 'visited' you!

3. Use negative keyword lists effectively

One method for reducing CPC in Google Ads is to use negative keywords. This feature is frequently "jumped" by new users, who later add it after the campaign launches. Create a negative list from the beginning and keep updating it, if at all possible, throughout the campaign.

In a nutshell, the purpose of a negative keyword list when running a SEM campaign is to "limit" the appearance of ads for terms that are not relevant or that are semantically related. For instance, if your company provides English classes for working adults, the keyword "English classes for kids" will quickly "burn" through your marketing budget without bringing in any new clients.

As a result, businesses can lower CPC for poorly related keywords and increase CPC for groups of words that actually produce results by imposing binding or restrictive conditions.

4. Experiment with different display rankings.

Based on the opponent's ad rank in the position below and adjacent, CPC is calculated. Targeting different placement rankings and observing how these cases affect clicks or conversions is the best way to lower CPC.

What causes competing bid prices to increase to the first position, for instance, if your ad appears in the first or second position and is equally effective?

Additionally, appearing first on Google Ads is not always the "golden position." Due to the variety of user behavior, users occasionally click on the second or third positions or are simply drawn to recognizable brands. If you only concentrate on the top spot, there's a good chance that your rival will use a bid strategy to "lock" you into that spot, driving up your CPC.

5. Take advantage of location targeting when running search ads on Google

SEM is more than just 'playing' with keywords, you can do much more with functions like geo-targeting. Think about it, isn't the conversion ability of all regions and cities the same?!

If you look deeper into the reports when running Google ads, you can see cities that have not brought in revenue or low revenue for many months. At this point, you can choose:

• Or narrow the scope of advertising

• Or adjust the bid price according to each locality to not miss the opportunity to convert and optimize CPC

6. Consider different 'keyword match type' options when setting up your campaign

There are more than 1 keyword matching options in Google Ads:

• Broad Match

• Broad +Match +Modifier

• “Phrase Match”

• [Exact Match]

Depending on the binding conditions, the bids between the options are also different: the more specific (exact match), the higher the CPC. So if your goal is to optimize CPC, consider combining “phrase match” or broach match with negative keyword lists to create resonance in terms of cost savings!

Tips to Optimize CPC in Google Ads

7. Adjust bid price by device

Businesses can use behavioral data to optimize CPC based on device when running Google Ads, similar to raising and lowering bid prices based on geographic location.

You can lower your bid rate for mobile devices to increase PC, for instance, if you notice that mobile searchers generate a lot of impressions and clicks but few conversions. Therefore, with a fixed budget salary, businesses can maintain overall effectiveness while ensuring that no opportunities are lost.

8. Schedule ads at different times

By using ad scheduling, you can guarantee that your advertisements always reach your target market when they are most'ready to convert' and searching. Even though there is no set formula, businesses can fully benefit from insights learned from test results or from previous campaigns to sharpen their "focus" on particular time periods!

9. Get ready for the battle with your brand keyword group

Many marketers use the strategy of running Google Ads with the keyword "competitor brand name." Even though there are numerous reach restrictions and CPC losses as a result of quality score, this "trick" is still widely disseminated online.

When you are in competition with your own brand name at this point, you might find it to be quite humorous. However, when you exploit the opponent, do not worry too much. Your CPC in the competitive bid market will be lower if you maximize the quality score factors. Is it significant if the opponent moves up to position 1 in the display rankings?

Epilogue

When a user clicks on your ad, you must pay Google a fee known as CPC. Additionally, CPC is not fixed and is determined by a variety of variables, including business lines or keywords. Your budget will be greatly reduced if you understand how to optimize Google Ads.

Hopefully you are already familiar with how to optimize Google Adwords to boost the efficiency of your advertising campaigns and lower CPC costs after reading the 9 tips provided above by KnowInsiders.

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