In 2022 the average CPCs per industry range from $1.16 to $6.75, being Legal, Consumer Services, and Technology the industries with the highest CPC.
Nowadays, the digital marketing industry has become one of the most competitive industries in the world. When it comes to pay-per-click, the key to great performance is the cost per click of the keywords in your marketing strategy. It’s simple math; the lower your CPC, the more traffic you can afford, resulting in a higher chance of getting more conversions.
Keep in mind that CPC is not set in stone. Many influencing factors can cause cost per click to increase or decrease. The average CPC can be influenced by seasonality, competition, and other elements used by Google Ads’ algorithm. The good news is that you can apply tactics to help you achieve a lower cost per click and increase your ROI.
Focus On Quality Score
As you might know, a quality score is a rating of how relevant and useful your keywords, ads, and landing pages are to a search query.
Quality score and your bid are the two factors that determine your ad rank. When you have a good ad rank, your ads will appear in the top positions of the SERP, which is crucial for your advertising success.
Now, you might be wondering how getting a good quality score will help decrease your CPC?
This is where it gets interesting. Quality score has a direct correlation with your CPC; the better your score is, the lower your CPC can be. It’s Google’s way of rewarding you for being the best option for the customer’s search.
Keep in mind that Google sets the rules, and its main priority is to remain the top search engine that delivers a seamless user experience.
How to Improve Your Quality Score?
1. Enhance your campaign structure: Use as many ad groups as necessary. This will allow you to have in each ad group the most related keywords and make all ad groups more relevant.
2. Work on your landing page: First of all, you need to make sure that the content on your website is relevant and aligned with what you are advertising on your ads. Moreover, you have to ensure that you link every ad group to the most optimal landing page. Lastly, do not forget about mobile searches, so make sure your website is mobile-friendly.
3. Make your ads more relevant: The more tailored your ads are, the better. Ensure that you include your main keyword and unique selling points so that your ads are appealing to the searcher.
4. Include relevant extensions: It’s been proven that ad extensions increase the CTR. So always try to include them. You can start by at least ensuring that you have site links, callouts, and structured snippets that are usually relevant to all types of business.
5. Add negative keywords: As mentioned above, relevance is key to your quality score. By adding negative keywords, you avoid getting irrelevant traffic. Remember that the broader your keywords are, the longer your list of negative keywords has to be.
Change Your Bidding Strategy
There are many moving pieces to consider when choosing your bidding strategy, so paying close attention to your existing data is essential.
Regarding bidding, there are many options to choose from, each targeting an array of goals. Some advertisers prefer manual bidding to have more control over bids, which makes sense if you are new to an account or if you do not trust the algorithm.
Let’s be realistic; if you manage many accounts, it can become challenging to use manual bidding. On the other hand, Google’s algorithm shows accurate results and is being improved constantly.
If you want to keep your bidding at a certain level, the automated bidding strategy you should try is Enhanced CPC. This is the perfect strategy to save time and control how high or low you want to bid on every keyword. As long as you ensure the algorithm is adjusting correctly over the first months, you can rest assured that this automated option will help you lower your CPC and achieve your desired results.
Try an Alternative Keyword Strategy
Your keywords play a crucial role when trying to lower your CPC. Sometimes you need to try a completely new strategy, including the types of keywords you are using, the length of these keywords, and the match type.
Thanks to historical data and expertise, we have been able to come up with some alternative approaches that you might want to try to lower your CPC.
1. Try Long Tail Keywords
Long-tail keywords are usually composed of four or more words. These keywords tend to be a lot cheaper since they are very specific, which means that fewer people are bidding on them, but still hold strong search intent
2. Use Broader Match Types
It may not always be the case, but not unusual to see that the same keyword has a variant CPC when used with another match type. Opposite to point one, the broader your match type, the lower your CPC can be.
3. Add More Keyword Variations
If you still cannot achieve to lower your CPC by trying a different match type or using broader keywords, you can also try adding new keywords related to the ones you already have, and this could help you target the same audiences while you lower your CPC.
Change Will Only Come From Action!
Be mindful that there are many different approaches that you can use to achieve your marketing goals. For some people, lower cost-per-click may seem like the best strategy, while others prefer to focus on the most competitive keywords regardless of cost because they know that it all comes down to target keywords that are more likely to convert.
Always keep an open mind to test mixed approaches, especially if there’s a chance of reaching your goals. Remember that your priority is to meet your customers’ needs and improve the users’ experience. Every case varies, so the strategies that best suit your needs and help you reach your objectives in the most effective way are what matter. Don’t forget to subscribe to our blog and YouTube channel to learn more about new alternative strategies you can leverage and implement in your PPC campaigns.