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How to reduce Avg CPC in CPA Managed Campaign

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hello friends,

 

I am having an Adwords account with CPA as managed bid,but the Avg CPC which I am getting in the accounts is vey high in an Adgroup.

Being new to adwords please help me in how to reduce Avg CPC although I used high Quality keywords.

 

Regards,

Deepak.

2 Expert replyverified_user
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Marked as Best Answer.
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Accepted by topic author deepakvyas612
September 2015

Re: How to reduce Avg CPC in CPA Managed Campaign

[ Edited ]
Top Contributor
# 2
Top Contributor

Hello Deepak,

 

When you say you use high quality keywords are you referring to Quality Score or the fact they are highly relevant to your website?

 

The first step would be to ensure that your ads, keywords and landing page content is all relevant within the ad group which is costing you too much. This is a good practice which will help improve your average Quality Scores and in turn reduce your costs while also allowing you to achieve higher ad positions for less money.

 

If you can retain a good average CTR over time then you will also notice an improvement in your ad positions, this gives you the opportunity to lower your CPC bid as those positions become more 'permanent'. 

 

I also suggest looking into Dynamic Keyword Insertion if you haven't done so already as it can be a great contributor to improving your CTR.


ScottyD, AdWords Top Contributor
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Marked as Best Answer.
Solution
Accepted by topic author deepakvyas612
September 2015

Re: How to reduce Avg CPC in CPA Managed Campaign

Top Contributor
# 4
Top Contributor

No problem Deepak,

 

I would recommend including one ad variation using the DKI in each ad group and then make comparisons against the 'normal' ads over time. If you find that one ad is outperforming the other ad(s) then you can take the appropriate action, it's just a case of split testing to see what works and what doesn't while then making decisions on what you learn.

 

I just suggest that you don't use the DKI if your intention is create a strong brand as your ad title can be very important in that situation.


ScottyD, AdWords Top Contributor
Was my response helpful? If yes, please mark it as the ‘Best Answer.’ Learn how here.

View solution in original post

Marked as Best Answer.
Solution
Accepted by topic author deepakvyas612
September 2015

Re: How to reduce Avg CPC in CPA Managed Campaign

Top Contributor
# 5
Top Contributor

Hello Deepak,

 

In addition to what Scott said above, I would like to add about the Ad Rank concept of Google, which is pretty interesting and if you find the right way to improve it, your average CPC would start decreasing gradually.

 

Ad Rank = Quality Score X Max CPC.

 

If you improve on your Quality Score (QS), your ad rank will improve and your avg cpc will start coming down automatically. Hence higher the ad rank, high is the QS and low is the average CPC in front of other advertisers competing in the same ad auction.

 

You can also refer to these bidding strategies article for more insights.

 

Best of Luck!

Pankaj

View solution in original post

Marked as Best Answer.
Solution
Accepted by topic author deepakvyas612
September 2015

Re: How to reduce Avg CPC in CPA Managed Campaign

[ Edited ]
Top Contributor
# 2
Top Contributor

Hello Deepak,

 

When you say you use high quality keywords are you referring to Quality Score or the fact they are highly relevant to your website?

 

The first step would be to ensure that your ads, keywords and landing page content is all relevant within the ad group which is costing you too much. This is a good practice which will help improve your average Quality Scores and in turn reduce your costs while also allowing you to achieve higher ad positions for less money.

 

If you can retain a good average CTR over time then you will also notice an improvement in your ad positions, this gives you the opportunity to lower your CPC bid as those positions become more 'permanent'. 

 

I also suggest looking into Dynamic Keyword Insertion if you haven't done so already as it can be a great contributor to improving your CTR.


ScottyD, AdWords Top Contributor
Was my response helpful? If yes, please mark it as the ‘Best Answer.’ Learn how here.

Re: How to reduce Avg CPC in CPA Managed Campaign

Visitor ✭ ✭ ✭
# 3
Visitor ✭ ✭ ✭
Thanks Scott,
I would like to let you know that I am referring to high Quality Score.
Just let me know is it good to use Dynamic Keyword Insertion in all my Ads or to some specific Ads. I studied about Dynamic Keyword Insertion but not very sure where to use because in display network campaign CRT is low.

Regards,
Deepak
Marked as Best Answer.
Solution
Accepted by topic author deepakvyas612
September 2015

Re: How to reduce Avg CPC in CPA Managed Campaign

Top Contributor
# 4
Top Contributor

No problem Deepak,

 

I would recommend including one ad variation using the DKI in each ad group and then make comparisons against the 'normal' ads over time. If you find that one ad is outperforming the other ad(s) then you can take the appropriate action, it's just a case of split testing to see what works and what doesn't while then making decisions on what you learn.

 

I just suggest that you don't use the DKI if your intention is create a strong brand as your ad title can be very important in that situation.


ScottyD, AdWords Top Contributor
Was my response helpful? If yes, please mark it as the ‘Best Answer.’ Learn how here.
Marked as Best Answer.
Solution
Accepted by topic author deepakvyas612
September 2015

Re: How to reduce Avg CPC in CPA Managed Campaign

Top Contributor
# 5
Top Contributor

Hello Deepak,

 

In addition to what Scott said above, I would like to add about the Ad Rank concept of Google, which is pretty interesting and if you find the right way to improve it, your average CPC would start decreasing gradually.

 

Ad Rank = Quality Score X Max CPC.

 

If you improve on your Quality Score (QS), your ad rank will improve and your avg cpc will start coming down automatically. Hence higher the ad rank, high is the QS and low is the average CPC in front of other advertisers competing in the same ad auction.

 

You can also refer to these bidding strategies article for more insights.

 

Best of Luck!

Pankaj

Re: How to reduce Avg CPC in CPA Managed Campaign

Visitor ✭ ✭ ✭
# 6
Visitor ✭ ✭ ✭
Thank you Scott and Pankaj for your quick response.

Regards,
Deepak

Re: How to reduce Avg CPC in CPA Managed Campaign

Top Contributor
# 7
Top Contributor
You are most welcome Deepak and feel free to come back to the community. All will be glad to answer you Smiley Happy

Pankaj