Actionable strategies to reduce high cost per click
Pay-per-click (PPC) advertising is a great way for businesses to reach potential customers, but if not managed properly, it can quickly become an expensive endeavor. AdWords is the most popular and widely used PPC platform, and its cost per click (CPC) can become exorbitant if not kept in check. The good news is that there are several actionable strategies you can implement to reduce high cost per click in AdWords and make it a more cost-effective marketing tool. In this article, we’ll look at 9 actionable strategies to reduce high cost per click and ensure you’re getting the most out of your AdWords campaigns. From keyword research and bidding strategies, to targeting specific audiences and optimizing your campaigns, these strategies will help you keep your AdWords costs in check and maximize your return on investment.
9 Actionable Strategies to Reduce High Cost Per Click
Your AdWords cost per click (CPC) is determined by your bidding strategy, ad copy, ad quality, and landing page. With that in mind, there are a few strategies you can implement to reduce high cost per click and make your AdWords campaigns more cost-effective. Let’s take a look at 9 actionable strategies to reduce high cost per click in AdWords and increase your overall ROI.
1. Identify and Target Profitable Keywords
The first step in reducing your cost per click in AdWords is to identify and target profitable keywords. Finding high-value keywords is crucial when optimizing ad performance to reduce high cost per click. Your goal when finding keywords is to identify high-volume, low-competition keywords that your potential customers are searching for. You can start by creating a list of potential keywords related to your business and/or product/service offerings. Next, run these keywords through AdWords’ keyword planner to determine their estimated cost per click, average click-through rate, and competition level. From there, you can sort your list by click-through rate to determine which keywords have the highest value. Once you’ve identified your high-value keywords, create a campaign for each keyword and write ad copy that’s specific to that keyword.
2. Optimize Your Ad Copy
Another key strategy to reduce high cost per click in AdWords is to optimize your ad copy. The copy in your ads is what will entice users to click on your ads, which is why it’s important to optimize it for maximum ad performance. The goal with your ad copy is to get people interested in clicking on your ads as quickly as possible. The faster your ad appears in the SERPs, the more impressions it will receive and the more clicks it will receive. There are a few things you can do to optimize your ad copy and reduce your cost per click. First, include your main keywords in your ad copy. This will help your ad stand out in the SERPs and encourage more people to click on it. Next, use compelling ad headlines. Your headlines should pique the curiosity of your target audience and be relevant to your business. Finally, make sure your landing page is optimized for your ad copy. If your ad copy promises a certain product or service, make sure your landing page adequately reflects that promise so you don’t turn off visitors and lose potential customers.
3. Utilize Negative Keywords
Another cost-saving strategy to reduce high cost per click is to utilize negative keywords in your campaigns. These are words and/or phrases that you want to avoid your ads appearing for, and for good reason. Negative keywords are used to reduce your cost per click by taking your ads out of search results for irrelevant keywords, which means you’re paying for less ad clicks. This also has the added benefit of increasing your click-through rate, as more people are seeing your ads and fewer are being turned off by irrelevant ads. When adding negative keywords to your campaigns, it’s important to be strategic. It’s easy to add too many and end up taking your ads out of search results that they should appear in. To avoid this, add negative keywords to each campaign and ad group level to create a targeted campaign.
4. Increase Your Quality Score
Another effective strategy to reduce high cost per click in AdWords is to increase your quality score. A high quality score means your ads have a lower cost per click, and it can really help to lower your overall CPC. A quality score is determined by your click-through rate, ad relevance, landing page quality, and other factors. This means that you can increase your quality score by optimizing these areas. To increase your quality score, make sure your ad copy is relevant to your keywords and that your landing page is relevant to your ad. You can also ensure your landing page has a high-CTR by including strong, persuasive call-to-action phrases and carefully choosing your landing page images.
5. Leverage Ad Extensions
Another strategy to reduce high cost per click in AdWords is to leverage ad extensions. Ad extensions are additional elements added to your ads, such as a call-to-action button, a site link, a product promotion, or a price reduction. These can help to increase your click-through rate and CTR while lowering your cost per click. There are several types of ad extensions you can use to reduce high cost per click:
- Destination extension: An extension that links to your website’s homepage or a specific landing page.
- Click-to-call extension: An extension that lets visitors click to call your business directly from the SERPs.
- Product extension: An extension that allows you to add a product listing or images of your products directly in your ads.
- Site link extension: An extension that allows you to add additional links directly to your ads.
- Price extension: An extension that allows you to display a promotion or price reduction directly in your ads.
6. Use Geo-Targeting
Another cost-saving strategy is to utilize geo-targeting. Geo-targeting allows you to focus your ads on a specific country or region. This can be helpful for businesses that want to target customers within a specific country or region. For example, if you’re an American travel company and you want to target American customers, you can use geo-targeting to focus your ads on only American customers. Geo-targeting is helpful for reducing your cost per click by focusing your ads on a specific country or region. This will limit the number of impressions your ads receive, which affects your CTR and cost per click.
7. Utilize Automated Bidding Strategies
Another cost-saving strategy is to utilize automated bidding strategies. With these strategies, you can set parameters for your bids, and the AdWords platform will automatically adjust your bids based on the data it collects. These bidding strategies are helpful for reducing your cost per click and ensuring your ads are being seen by as many people as possible. However, it’s important to monitor these automated bidding strategies and adjust them as necessary when certain events occur, such as holidays or other special events. There are a few bidding strategies you can employ to reduce your cost per click:
- Target average position: This bidding strategy will help you maintain a certain average position in the SERPs while keeping your costs low.
- Max out click-through rate: This bidding strategy will help you maximize your click-through rate while keeping your costs low.
8. Utilize Audience Targeting
Another cost-saving strategy is to utilize audience targeting. Audience targeting allows you to target people based on their interests, demographics, and/or online behaviors. This can be helpful for reducing your cost per click by increasing the number of qualified visitors clicking on your ads. There are a few ways you can target audiences to reduce your cost per click:
- Use interest targeting to focus your ads on people who are interested in your products or services.
- Use demographic targeting to focus your ads on people who fit a specific demographic.
- Use contextual targeting to focus your ads on people who are currently engaging with related content.
9. Track and Monitor Results
Finally, it’s important to track and monitor your results. Review your results regularly and make changes to improve your conversion rate. If you’re not getting the results you want, don’t be afraid to experiment with different strategies. PPC can be a great way to reach potential customers, but it takes some effort to make sure it’s working effectively for your business.