What if I told you that it is possible to have a lower cost per click (CPC) and a higher ad rank on Google Adwords? Yes, you read it right! This article, How To Reduce CPC On Google Adwords, will teach you how you can have both- a lower CPC and a higher ad ranking.
The secret to achieving both is understanding the quality score of your ad campaign. This factor plays an important role in the success of your Google Ads campaign but is often missed by everyone.
Whenever I analyze my clients’ accounts, I noticed that their quality scores are off the rank and their CPC is too high.
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How to Reduce CPC on Google Adwords
The technique I often used to bring CPCs down is to improve and deliver a better ad campaign. This is the secret that I am sharing with you today.
To help me save on ad costs and improve my ROI, I am using a Google Adwords CPC calculator, which is a very important tool that you can use to help you get the same success as I have with my clients’ ad campaigns.
But before I show you how to use this tool, let us understand first what Google quality score is about.
Google Ad Quality Score
The Google quality score is Google’s rating of the quality and relevance of both your keywords and ads. The quality score also determines the cost per click (CPC) of your ads.
That said, your CPC is dependent on your quality score. The higher your quality score is, the lower CPC you can get.
Multiple factors are used to determine the quality score. These are:
- click-through rate (CTR)
- keyword relevance to your ads
- landing page experience
By understanding how quality score is computed and the other data involved in managing your ad costs, you can greatly reduce your CPC, and at the same time get a better ranking in Google search results.
How a good quality score works for ads
Google cares so much about user experience and this is the focus of achieving a good quality score in your Google Ads. You need your keywords to be relevant to your ad content and your landing page.
Relevancy plays an important role in increasing your quality score. You need to have at least a baseline score of 5 to get a lower CPC for your ads. The higher the quality score is, the better you can save on your ad costs.
The good news is you do not have to be an expert Google Ads analyst to manage your ad costs and quality score. All you need is a tool that will automate these things for you.
How to use Google Adwords CPC calculator
This tool is very easy to use. You just need to fill up the needed information in 4 easy steps and you can get the data that you need to improve your quality score and to lower your ad costs.
Step 1 Know the desired number of customers and the lifetime value of the customer
The number of customers pertains to the target number of customers that you are aiming for per month. The lifetime value of the customer, on the other hand, pertains to the average value (in money) that you get as payment for your product or service.
Multiply these two factors to get your target revenue for the month.
Step 2 Find the lead conversion rate and the number of leads desired
The lead to customer conversion rate is the percentage of leads that you get. For example, you got the ratio 4:1, which is for every 4 phone inquiries, you convert to 1 customer.
Once you got that ratio, the ads forecasting tool will automatically compute your number of leads required to hit your target.
Step 3 Get the conversion rate and the number of clicks
The conversion rate is the conversion rate from your Google Ads account, which pertains to the number of clicks or any actions that you need to convert your ad.
As soon as you fill in the conversion rate, the ads forecasting tool will calculate the number of clicks.
Step 4 Calculate the cost per click (CPC), click-through rate (CTR), and impressions
You can get these numbers and estimates by referring to your Google Ads account.
Once you finished the 4 steps above, the Adwords CPC calculator will automatically give you a cost per lead (CPA) result, which you can use to predict your expenses and targets among many other things.
BONUS: Download your free Google Adwords CPC Calculator
Working smarter is the key to a successful return of investment (ROI) in your Google Ads, while at the same time cutting back on your CPC costs. This strategy will also help you compete with big advertisers. As long as you keep an eye and you further improve your quality score, you can outrank your competition with this simple trick!