It’s not easy to make money online when there are countless other brands competing for the attention of your customers. However, some tactics do have the potential to increase traffic and generate more revenue than others, PPC campaigns being one of them.
With Google generating over 160 billion searches per month, it’s clear why Google Ads campaigns are still one of the most popular tactics amongst marketers. However, running PPC campaigns is a bit of an art and does require some trial and error before you understand how to make it work for your business.
So, what is it that convinces searchers to click on an ad in their search results?
According to a survey by Clutch, there are four main reasons why someone would click on an ad if it appeared in their search results:
There are a number of different components that contribute to the success of a Google Ads campaign but in order to appear in a searcher’s results, you need to bid on the right keywords.
The Most Expensive Google Ads Keyword Categories
These are the Google Ads categories that have the highest search volumes as well as the highest cost per click:
As you already know, Google Ads is an auction-based platform that allows advertisers to bid on keywords in order to gain a better position in Google search results for specific search queries.
There are a number of factors that determine a minimum and maximum CPC for each keyword – Quality Score being one of them.
Keyword categories with higher search volumes and costs are usually linked to businesses with a high customer lifetime value. Businesses that can afford to pay more to acquire customers tend to fall into expensive keyword categories.
If you have no choice but to compete in one of the sectors mentioned above, there are a few things that you can do to increase the success of your campaigns and lower your CPC:
A quality score is a rating that speaks to the relevance and quality of your Google Ads campaigns. Increasing your quality score can help you save time and money, while converting more website visitors into paying customers.
There are a few ways that you can improve your quality score:
Negative keywords allow you to filter out the users who shouldn’t see your ads and prevents your ads from showing up for irrelevant searches. When your ads are showing up for the wrong search requests, you will be wasting money on clicks that won’t lead to conversions.
Many marketers tend to forget to include negative keywords when creating their campaigns but it’s an excellent precautionary step that can help you compete in challenging keyword categories.
Here are a few tips to help you manage negative keywords:
While keywords are important, there is more to bidding than that. There are a few additional areas that you can look at to optimise your campaigns and lower your CPC.
Ask yourself the following questions to determine where your CPCs can be increased or decreased:
By increasing your bids based on high-performing elements, your ads will become more visible and hopefully your conversions will increase too. Knowing when you should be pausing an ad or cancelling a campaign will also lower your CPC and save your business money.
Your Google Ad and Google Analytics reports can both provide you with valuable insights that will make campaign optimisation that much easier.
Keyword match types control which searches trigger your ads. The different match types are Broad Match, Broad Match Modifier, Exact Match and Phrase Match.
Depending on the structure of your campaign, you might notice variations in avg. CPC for the same keywords that are allocated to different match types. To lower your CPC, you could test out the same keyword across different match types by setting up several ad groups. The other option is to create a separate campaign completely.
Once you see which match types are more expensive, you have the option to change keyword to less expensive match types to lower your CPC. Just be sure to triple check your negative keywords to avoid any irrelevant traffic if you’re going to take this approach.
If you’re wondering which match type performs better in general, Broad Match Modifier is the type that most marketers use.
Once you notice an increase in your quality scores and ad ranks, another optimisation option becomes available to you.
Lowering your bids is one of the most straightforward ways to lower your campaign’s CPC. Lowering your bids means you won’t be charged as much per click, which means your ROI increases too. There is still a chance that your position would drop a bit but it won’t be by much and you will at least be able to afford additional clicks on the same budget and increase your overall exposure at the same time. Following the introduction of Automated Bidding and Machine Learning, many marketers are taking this approach to maximise their ROI. For those who would prefer to control how much they pay for every click, Manual CPC will be necessary.
If you do choose to lower your bids, it’s important to keep an eye on your numbers to make sure that your traffic volumes aren’t dipping too low and reversing your past efforts.
Lowering your CPC can increase your turnover but it certainly shouldn’t be your only priority. Meeting the needs of potential customers and improving the overall user experience should always be your top priority when running Google Ads campaigns because this is what will increase website traffic and conversions.
Another thing to keep in mind is that highly-competitive niches may have higher CPCs but the conversions rates are higher too, which is when calculations such as lifetime value become important to establish whether it will be worthwhile for your business. Remember, expensive keyword niches are more costly because businesses are seeing returns. Becoming a player in these niches can be challenging but the results are well worth it if you do things correctly.