In the ever-changing world of digital marketing, reducing your Cost Per Acquisition (CPA) is a key factor in maximising the profitability of your campaigns. However, when faced with rising costs, many advertisers struggle to find effective ways to lower their CPA without sacrificing the quality or volume of conversions. One impactive strategy you can implement to decrease this is to lower your Cost-Per-Click (CPC). CPC refers to the amount of money you pay for each click on your ad, whilst CPA is referring to the cost of acquiring a customer (or achieving a conversion goal) through your ad. A high cost per conversion can often eat into your profitability, especially if your margins are slim. It’s crucial to establish an acceptable acquisition cost for your business, factoring in careful analysis to ensure your marketing efforts are contributing positively to your bottom line.
In this blog, we’ll explore actionable strategies that ensure your campaigns perform to their potential, without breaking the bank. Whether you’re new to paid online advertising or looking to refine your existing campaigns, these insights will guide you towards a more efficient and profitable advertising strategy.
5 Ways to Lower Your Cost-per-Click
- Eliminating Irrelevant Traffic
Prevent wasting budget on irrelevant traffic by implementing these strategies:
- Focusing on long-tail keywords as they tend to have lower competition whilst being highly relevant.
- Regularly updating negative keywords to remove the potential for unnecessary clicks.
- Using geographic and demographic targeting to narrow your audience to focus on the high-converting segments.
- Making device adjustments can enable you to analyse performance by device and adjust bids accordingly. However, it must be considered that this will only work on non-conversion based bidding strategies, unless they are set to -100%, otherwise they will be ignored by the system.
- Use ad scheduling to show how ads perform over the day, so you can reduce spend during low-conversion periods.
- Improve Your Quality Score
Improving quality score will not only help your ranking on the search results page, but will also help you to lower your click cost One way in which you can boost your quality score is by improving your ad relevance, this can be achieved by ensuring that your ad copy closely matches the search keywords you’re targeting. Another way is to optimise your landing page, by ensuring they are relevant, loading quickly for the user and providing a good user experience. Google ultimately rewards higher-quality landing pages, with lower costs. You can combine both of these to improve your expected click-through rate.
- Ensure Your Ad Copy is Relevant
In order to make sure you have relevant ad copy, you can do ad copy testing. You can use A/B test ad variations, to continuously test different headlines, descriptions and call-to-action, to find the most effective combinations to bring in higher click-through rates and conversions at the lowest cost. You can also utilise ad extensions to enhance your ads with sitelinks, callouts and structured snippets. This too will help to increase your clicks, without directly increasing the click cost.
- Change your Bid Strategies
Consider experimenting with bid strategies such as using automated bidding, such as manual cost-per-clicks on brand only campaigns to give you more control. This means that optimise bids in real-time based on the likelihood of conversion, potentially lowering your click cost.
- Monitor Budgets
Lowering click cost plays a crucial role in enhancing budget efficiency, as it enables you to stretch your advertising budget further. By reducing this, you can generate a higher volume of clicks and potentially increase conversions without needing to increase your overall spending. Therefore, by monitoring your budgets, you can ensure that it is being spent effectively and even reallocate some of your spend to other aspects of your marketing.
If you are looking to increase your enquiries and sales, whilst maintaining a low cost for your paid advertising, contact us today to find out more about our Google Ads Management services and how they can benefit you.
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