For businesses using Google Ads to drive traffic and conversions, managing advertising costs is critical. The Cost Per Click (CPC) directly impacts your marketing budget and return on investment (ROI). Finding effective ways to lower your CPC ensures that you maximize results while spending less.

In this guide, we’ll discuss 20 ways to lower your cost per click, breaking down each strategy into simple, actionable steps so you can start optimizing your campaigns today.

1. Understand and Improve Your Quality Score

What is it?
Google assigns a Quality Score to your ads based on three factors:

• Relevance of your keywords to the ad.
• Landing page experience for users.
• Expected click-through rate (CTR).

A higher Quality Score reduces CPC, as Google rewards relevance with lower costs.

How to Improve It:

• Use specific keywords directly in your ad copy and landing pages.
• Design landing pages that are user-friendly and offer valuable information.
• Regularly update your ads to maintain relevance.

2. Conduct Detailed Keyword Research

Why It Matters:
Using the wrong keywords can drain your budget. Comprehensive research helps you target terms that balance intent, competition, and cost.

Steps to Lower CPC with Keywords:

• Use tools like Google Keyword Planner or SEMrush to find low-cost, high-conversion keywords.
• Target long-tail keywords, which are often less competitive and more specific.
• Regularly review and refine your keyword list to avoid costly, underperforming terms.

3. Implement Negative Keywords

What Are Negative Keywords?
Negative keywords prevent your ads from showing up in irrelevant searches. For example, a restoration company may exclude terms like “DIY” or “free.”

How to Use Them:

• Regularly analyze your search terms report to identify irrelevant searches.
• Add those terms as negative keywords in your campaigns.
• Continuously update your list to keep refining your audience.

4. Use Targeted Audience Segmentation

What Is Audience Segmentation?
Audience segmentation allows you to focus on specific demographics, interests, or behaviors, ensuring your ads only reach people likely to convert.

How to Apply It:

• Use Google Ads Audience Manager to create audience lists.
• Target users based on behaviors such as website visits, downloads, or purchases.
• Exclude audiences that don’t match your ideal customer profile.

5. Split-Test (A/B Test) Ad Copy

What Is A/B Testing?
This involves testing two versions of your ads to see which performs better. Better-performing ads often lead to higher click-through rates and lower CPC.

How to Perform A/B Testing:

• Create two versions of the same ad with different headlines, CTAs, or descriptions.
• Monitor performance metrics like CTR and conversions.
• Keep the winning version and iterate further.

6. Optimize Your Ad Schedule

Why It’s Important:
Not all clicks are equally valuable. Running ads during times when your audience is most active improves results and avoids wasted spend.

Steps to Optimize Scheduling:

• Analyze when your ads receive the most clicks and conversions.
• Schedule your campaigns to run during those peak hours.
• Test adjustments and refine based on performance data.

7. Enhance Landing Page Relevance

What’s the Connection to CPC?
Google factors in landing page relevance when determining Quality Score. A highly relevant page leads to lower CPC.

How to Optimize Landing Pages:

• Align your landing page content with ad copy and keywords.
• Ensure pages load quickly and are mobile-optimized.
• Include a clear and compelling call-to-action (CTA).

8. Use Ad Extensions

What Are Ad Extensions?
Ad extensions provide extra information, such as phone numbers, site links, or reviews, making your ad more engaging.

How to Add Extensions:

• Use sitelink extensions to highlight additional pages.
• Add call extensions to let users contact you directly.
• Use structured snippets to showcase your offerings.

9. Focus on Long-Tail Keywords

What Are Long-Tail Keywords?
Long-tail keywords are longer, more specific phrases (e.g., “affordable water damage restoration in Austin”).

Why They Help Lower CPC:

• Less competition means lower CPC.
• They attract highly specific audiences, leading to better conversions.

How to Use Them:

• Research phrases that include location, intent, or product details.
• Incorporate them into your ads and landing pages.

10. Geo-Target Your Campaigns

What Is Geo-Targeting?
This strategy limits ad visibility to specific locations, ensuring only relevant users see your ads.

How to Geo-Target:

• Define service areas in Google Ads.
• Exclude irrelevant locations to prevent wasted clicks.
• Use location-specific keywords to enhance relevance.

11. Adjust Device Targeting

Why It’s Important:
Certain devices may yield better performance depending on your audience and campaign goals.

Steps to Optimize Device Targeting:

• Analyze device performance data.
• Allocate budget to the best-performing devices.
• Adjust bids or exclude underperforming devices.

12. Leverage Remarketing Campaigns

What Is Remarketing?
Remarketing targets users who have interacted with your website but didn’t convert.

How It Lowers CPC:

• Re-engaged users are more likely to convert, improving CTR and reducing CPC.
• Remarketing ads often face less competition.

13. Optimize for Ad Rank

What Is Ad Rank?
Ad Rank determines your ad’s position in search results, influenced by Quality Score and bid amount.

How to Improve Ad Rank:

• Focus on improving Quality Score.
• Use relevant, high-quality keywords.
• Refine ad copy to boost CTR.

14. Exclude Poor-Performing Placements

What Are Placements?
In Google Display campaigns, placements refer to the websites where your ads appear.

How to Exclude Low-Performing Ones:

• Review placement performance reports.
• Identify sites with high costs but low conversions.
• Exclude them from your campaign.

15. Monitor Competition

Why It Matters:
Understanding competitor strategies helps you refine your bidding and targeting.

How to Stay Ahead:

• Use Auction Insights to track competitor performance.
• Adjust bids and targeting based on market trends.

16. Set Bid Caps

What Are Bid Caps?
Bid caps limit how much you’re willing to pay per click.

How to Implement Them:

• Determine a maximum CPC that aligns with your budget.
• Use automated bidding strategies to maintain control.

17. Experiment with Ad Formats

Why Experiment?
Different ad formats, like responsive or video ads, may perform better depending on your audience.

How to Test Formats:

• Run campaigns with multiple formats.
• Analyze performance to identify the most cost-effective options.

18. Monitor and Adjust Bidding Strategies

What Is Bid Optimization?
Bid strategies control how Google adjusts your bids during auctions.

How to Optimize Bidding:

• Use automated bidding for better efficiency.
• Monitor performance and adjust based on results.

19. Track Conversions

Why It’s Crucial:
Tracking conversions ensures you measure ad performance accurately.

How to Do It:

• Set up conversion tracking in Google Ads.
• Optimize campaigns based on conversion data.

20. Continuously Optimize Campaigns

Why Ongoing Optimization Is Key:
Ad performance can change over time. Regular reviews ensure your strategy stays effective.

How to Maintain Performance:

• Schedule weekly or monthly campaign audits.
• Experiment with new keywords, audiences, or formats.
• Use data insights to refine strategies.

Final Thoughts: 20 Ways to Lower Your Cost Per Click

Implementing these 20 ways to lower your cost per click can have a transformative effect on your Google Ads performance. By focusing on relevance, data-driven decision-making, and continuous optimization, you’ll drive better results while keeping your ad spend in check.

For businesses looking to reduce their CPC while maintaining high performance, Unified Marketing offers tailored strategies to optimize your Google Ads campaigns. Contact us today to learn how we can help maximize your advertising ROI!