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how to lower adwords CPC

[ Edited ]
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# 1
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Currently, we are using the maximum click strategy and now have a high CPC. Though we are spending under our budget, we want to lower our CPC average cost.

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how to lower adwords CPC

Top Contributor
# 2
Top Contributor

Hi @Mandarin S,

 

There are some variables with the right answer to this, such as what type of campaign you are referring to. However, we can touch on some ideas that should help you.

 

1) Keywords!

 

The first we have to talk about is to consider the keywords you are using, along with the variations & modifiers you have in place. There are vast differences in CPC with a broad match to phrase to exact keyword. Often simply researching, testing and playing around with the keyword types will bring about the change you want. And long tail keywords are often overlooked, but they are important since they generally will bring higher quality scores. Did you know that your quality score has a lot to do with lowering your CPC? Yes, it sure does. You want to aim for those 10/10 scores for your keywords, accept 7/10, 8/10 and 9/10... and seriously question the use of anything at or under 6/10. There are times where 5/10 & 6/10 scored keywords are accepted, but that is a case by case situation. I really will let sit any 1/10 - 4/10 no matter what. I totally dislike them... although I know agency professionals that do keep some for specific reasons. You can use the Keyword Planner within AdWords to research, along with putting the KeyWord Search Report to work. YOu are using negative keywords right? Campaigns bring better results that do.

 

2) Landing Page!

 

Your keywords can only work as well as your landing page. This means that the landing page needs to be considered when thinking about quality of the campaign, which is the foundation of keyword quality scores, which is the foundation of keyword CPC. The relevancy of your keywords to landing page is absolutely critical. 

 

3) Ads!

 

Your keywords and landing page tie directly into your ads. To bring the most performance from your campaign, you must dial in your ads to landing page to keywords. When you get this spot on, your CPC will go down while your relevancy and quality score goes up. 

 

4) Ad Groups!

 

I have seen everything else be almost perfect with campaigns but by not creating the proper ad groups, the quality scores stayed down, as did performance. Keep these strong, tight and with a low amount of keywords. I aim for 15 keywords per ad group, and really hate to go over 25. 

 

If you think over what I have posted, along with researching the terms and info... you will rip open a host of knowledge in AdWords that will serve you well. I would suggest thinking on your goals / conversions, too. Use Google Analytics to help see the data with AdWords, all of which is important. 

 

Please post up any thoughts or questions so that we may assist further, if needed. I do hope this info helps.

 

Kind Regards,

 

James

 

____________________________________________________________
Google My Business & Google Ads Top Contributor
Google Partner | GYBO Agency | Local Guide | My Profile


 


 


 

how to lower adwords CPC

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# 3
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You can try a few more things. Clemens has already provided great tips and covered most things you can implement to bring CPCs down.

 

1. Try long tail keywords that have lower bids.
2. Test target CPA bidding or auto-bidder with a cpc bid limit to see if that helps. It's all about testing and iterating to find the bidding sweet spot to get maximum value at the lowest possible cost.
3. This is another great article I found called - Simple PPC Formulas Proven to Lower Your Costs. You can review some of the information provided at the below worstream link.


http://www.wordstream.com/blog/ws/2016/10/17/ppc-formulas

 

Hope this helps.

 

Cheers,

Chetan

 

how to lower adwords CPC

[ Edited ]
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# 4
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James provided you with an excellent summary of the most important factors behind getting better quality scores.  I would just add to that with these three points:

 

1. Ad Groups!  (ok, this is a repeat).  The point i want to make about them is that it is "a lot of work" to create a highly structured campaign with highly focused ad groups: not too many keywords per ad group, and they should be highly related.  Creating tight ad groups allows you to write highly relevant ads for each ad group, leading to higher quality scores.  It's a lot of work to break a campaign out into a lot of ad groups, but you can have confidence it almost always will be worth it if your objective is to create a high quality campaign which can be further optimized.

 

The secret to creating a those highly focused ad groups starts earlier, when you structure your campaign.  You should factor your keywords phonetically and group your keywords that way, instead of by function, market, price point, or some other otherwise logical organizing criteria.  

 

When you organize ad groups based upon the grammatical construction of the keywords down to the individual word or even syllable level, then it is much simpler to create tight groups of highly similar keywords.  It will also help in flushing out less obvious, perhaps longer-tail keywords. 

 

2. A lot of the quality score calculation is based upon CTR.  Since it is a measure of engagement in the ad (responsiveness to it), Google weights CTR heavily in the quality score calculation. 

 

3. Ad Extensions.  Google increasingly relies upon ad extensions to influence the quality score calculations.  Make sure to make full use of all applicable ad extensions. 

how to lower adwords CPC

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# 5
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I found a very useful post on QS today. Having a rock solid QS is the key. As per the article:

 

"Unfortunately, because QS is a machine learning system, there are few absolute answers Googlers can share. If QS were a simple piece of code using some if-then clauses, any engineer could share that algorithm and tell us what would happen.

But it’s not that simple. The machine has built its own understanding of the ad auction and makes independent decisions. The best way to understand this complex system is to think logically about what it is trying to do — and that’s to show relevant, high-CTR ads that connect advertisers with customers who need their help."

 

http://searchengineland.com/didnt-know-recent-quality-score-changes-259559