Running campaigns in Google Ads can become quite costly if you are not running your campaigns with Google’s best practices in mind. The key to reducing your Google advertising costs comes down to relevancy. The more relevant your ads are to a user the lower your advertising costs. We will cover the costs of Google Advertising, the elements that contribute and the most practical ways to reduce your costs.
What is ‘Cost Per Click’ in Google Ads?
The cost per click (CPC) is the average amount you pay for a click on your ad in Google. The key to reducing your costs centres around lowering this CPC on your account. In this article, we will detail how to do this.
The first factor to consider when creating your campaign is what keywords to use. It is important you use specific keywords to what you are advertising and match them with a highly relevant landing page. Use Google’s Keyword Planner to find keywords that are relevant to your service and product offering. This tool helps you to see which keywords are popular and the historical search data. With this data it helps you to decide whether or not to add specific keywords to your campaign. Using the most relevant keywords to your website helps to reduce your Google advertising costs.
How Improving Quality Score Can Reduce The Cost Of Google Ads
To understand how to reduce your costs in Google Ads, it is vital you are aware of what a quality score is and how it affects your campaigns.
Quality score is the rating Google gives your keywords and ads. It determines your cost per click and ad rank in the auction.
Your quality score takes into consideration the following:
- Click through rate (CTR)
- The relevance of your keyword
- Landing page quality and relevance
- Ad relevance
- Historical performance
Google does not identify exactly the percentage of how much each factor contributes to the score. Ensuring all the above factors are optimised helps to score highly, increase your ad rank and lower costs. For more information about the importance of your quality score in the set up of your search ads, read on here.
At Dynamic Creative we use a highly granular structure of single keyword ad groups to ensure our campaigns are efficient and cost effective. The concept is simple, each keyword you are targeting should have a separate ad group. Therefore you can make each ad within your ad group relevant to the search terms matching each keyword.
Single keyword ad groups can be used in any search campaign across any industry. Here at Dynamic Creative we have found proven success with online retail stores. Using your website structure of categories, sub-categories, inventory and individual product pages you can build out your SKAG structure. The result is a highly granular campaign of individual ad groups with each keyword leading to its own landing page. You can still have multiple ads and keywords directing to a landing page but it is important to match your ad copy and keyword to each search term.
Each keyword corresponding to an individual’s search query and to a landing page on your website means that you’re optimizing for Ad Relevance as well as landing page experience. Once again reducing your cost per click and, as a result, your cost per conversion.
To avoid paying for searches that are irrelevant to your business it is important you add negative keywords to your account. This means that your ads will stop showing for the specific negative keywords you add and you will reduce your costs. You can view your negative keywords by clicking ‘keywords’ on the left side of your Google Ads view. Then navigate to the negative keyword tab on the top of your page, here you can add individual negative keywords or even negative keyword lists.
An important setting to consider when looking at your Google Ads Costs is your location targeting. Check your campaign to ensure you are only targeting the location areas in which you wish to show your ads. Do not target entire countries or worldwide if your products or service is not available in that location. This is an easy way to save some pennies.
Another component to location targeting is the location options settings. If you only want to target people in exact locations ensure you select ‘people in or regularly in your targeted locations’. When excluding locations makes sure you also select the option ‘people in your excluded locations’ otherwise your risk wasting money in areas you do not want to spend.
Not all businesses run 24/7 7 days a week or take orders every hour of everyday. For example, a Florist will often shut orders off at a certain time in the afternoon to ensure they can deliver the requested flowers orders in time. Or certain Florists may close on weekends. To reduce the cost of your Google Ads when orders are closed, it is possible to also schedule your ads to turn off. This ensures you are spending your money during the hours which are most important to your business.
Ad scheduling can be used to outline certain hours or days when you want ads running. Additionally, bid adjustments can be used to increase or decrease your bids for certain days and times. You might not want to completely turn your ads off but rather spend less on certain days. Bid adjustments allow you to do this.
If you do not implement any ad schedules for your campaigns, they will by default show ads all day when users search for your keywords. Certain days in the week may be more popular for your keywords and you will start to see trends of higher and lower days during the week.
However you should bear in mind that this is not available with Google Smart Shopping campaigns as Google’s Machine Learning should identify a business’s quiet periods.
Reducing Cost of Google Ads: Final Word
To summarise, the key to reducing your advertising costs in Google is relevancy. Use highly relevant keywords with single keyword ad groups to direct your ads to the most relevant landing page. This structure is fundamental in achieving a high quality score and in turn reducing your costs.
The Dynamic Creative Ad Platform helps you get a better return on your advertising by focusing on these measures. We integrate with your website to create highly relevant ads from your product data. The ads are optimized and structured to take advantage of Google’s Machine Learning to reduce your Google Ads costs. For more information on how we can reduce your costs and get you more for less contact us now.