SPEEDPPC ARTICLES

Master the Art of Lowering Your Average CPC

Improve your campaigns and reach your goals

Are you looking to optimize your PPC campaign and get the most out of your advertising budget? One key metric to keep an eye on is the average cost-per-click. In PPC advertising, CPC is the pricing model in which the advertiser pays for each click on their ad. But what exactly is it and how can it help you improve your campaign?

In this blog, we'll dive into the details of average CPC and how it can be used to measure the effectiveness of your PPC campaign. Whether new to PPC advertising or a seasoned pro, this blog will provide valuable insights to help you improve your campaign and achieve your business goals.

Explanation of what it is all about!

Average cost-per-click is a metric used in pay-per-click (PPC) advertising to measure an ad campaign's effectiveness. It represents the average amount of money an advertiser pays for each click on their ad. To calculate the average CPC, simply divide the total cost of the campaign by the total number of clicks the ad received.

For example, if an advertiser spends $100 on an ad campaign and the ad receives 100 clicks, the average CPC would be $1.00. This means that the advertiser is paying $1.00 on average for each click on their ad.

Average CPC is a useful metric because it allows advertisers to compare the performance of different ad campaigns and make informed decisions about their ad spend. It also gives advertisers an idea of how much they are paying for each click and how much they can expect to pay for similar campaigns in the future.

It's important to note that CPC can vary depending on factors such as targeted keywords, the ad's placement, and the advertiser's competition. Advertisers can use this information to optimize their campaigns and make adjustments to increase the effectiveness of their ads.

Read all about how to improve your ads in the SpeedPPC Community knowledge base.

Master the art of lowering your average CPC using proven strategies

Lowering average cost-per-click (CPC) is important for several reasons:

Increased efficiency: Lower CPC means that you are paying less for each click, which can increase the efficiency of your ad spend. You can get more clicks for the same budget, leading to more conversions and a better return on investment (ROI).

Better performance: Lower CPC can also indicate that your ad campaign is performing well. A high CPC can indicate that the ad is not resonating with the audience or that the competition is too high, leading to a higher cost for each click. Lowering CPC means that your ads are more relevant and appealing to your target audience, resulting in more clicks.

Increased competitiveness: Lower CPC can make your ads more competitive. With a lower CPC, your ad will likely show up higher in the search results, which can lead to more visibility and clicks.

Increased scalability: Lower CPC allows you to scale up your campaign and reach more people. With a lower cost per click, you can afford to bid on more keywords and increase your ad budget, leading to more traffic and conversions.

By paying less for each click, you can increase the efficiency of your ad spend and achieve a better return on ad spend. A lower CPC also indicates that your ad campaign is performing well, making it more competitive in the marketplace and allowing for increased scalability.

That's not all! Read more as will be discussing a variety of proven strategies and tactics to help you achieve this goal. We will cover everything from targeting and segmentation to keyword research and optimization, ads and creativity, to campaign structure and management.

By the end of this post, you will have the knowledge and tools necessary to lower your average cost per click and see a better return on investment for your PPC campaigns.

Targeting and Segmentation

One of the main ways it can affect CPC is by allowing you to reach a more specific and relevant audience. When you target and segment your audience, you can ensure that your ads are being shown to people who are more likely to be interested in your products or services. This can lead to a higher click-through rate (CTR) and more conversions, which can lower your average CPC.

Another way targeting and segmentation can affect CPC is by allowing you to bid more effectively on keywords. When you know your target audience, you can research the keywords they are searching for and bid more effectively on them. This can lead to your ads showing up more frequently and in better positions, increasing your CTR and lowering your average CPC.

Best practices for targeting and segmentation

Here are a few practices for targeting and segmentation in PPC campaigns:

Define your target audience: Before you begin targeting and segmenting, it is important to clearly understand who our target audience is. This should include demographics like age, gender, location, interests, and behaviors.

Use multiple targeting methods: You can use various targeting methods, such as demographic targeting, interest targeting, behavior targeting, etc., to reach your target audience. Multiple targeting methods can help you reach a more specific and relevant audience.

Test and refine: Once you have set up your targeting and segmentation, it's important to test and refine your campaigns. You can monitor your results and make adjustments as needed to improve performance.

Use negative targeting: Negative targeting allows you to exclude certain segments of your audience from seeing your ads. This can help you avoid wasting ad spend on people who are not likely to convert.

Utilize lookalike audience: Lookalike audience targeting allows you to target users with similar characteristics to your existing customers. This can help you reach new potential customers more likely to convert.

Use Audience Insights: Utilize tools such as Google Analytics to gain insights into your target audience, including their demographics, interests, behavior, etc.

By following these practices, you can ensure that your targeting and segmentation are effective and efficient, resulting in a more relevant audience, higher click-through rates, and lower average CPC.

Best tools for targeting and segmentation

Each of the tools listed below can help lower your CPC differently. Here's a summary of how each tool can help:

Google Analytics: This tool can help you track your website's traffic and conversion data, giving insight into how your campaigns perform and where you can improve.

Google Tag Manager: This tool can help you manage and track the different tags on your website, which can help you to understand your audience better and target them more effectively.

Google Optimize: This tool can help you test different variations of your website, which can help you identify the elements that impact your conversion rate and overall PPC performance.

Bing Ads Intelligence: This tool can help you research keywords and analyze your competitors' strategies on Bing Ads, which can help you to identify opportunities to lower your CPC.

Using these tools, you can track your competitors and make data-driven decisions to help you lower your CPC and improve your overall PPC performance.

Keyword Research and Optimization

Keyword research and optimization can greatly affect CPC by determining the relevance and competition of the keywords you are bidding on. Keyword research is finding the most relevant and profitable keywords for your business. These keywords are then used in your ads and bid on in the auction process.

When you bid on highly relevant keywords, your ad is more likely to be shown to the right audience, resulting in higher click-through rates (CTR) and lower CPC. On the other hand, if you bid on relevant keywords, your ad will be shown to the right audience and may result in lower CTR and higher CPC.

Optimization of keywords also plays a crucial role in affecting CPC. By optimizing your keywords, you can improve the relevance of your ads, making them more likely to be shown to the right audience, and also make sure that you're bidding on the most profitable keywords.

We have the scoop on the best ways to optimize your keywords over in the SpeedPPC Community.

Best practices for keyword research and optimization

Here are some practices for keyword research and optimization:

Start with a broad list of keywords and then narrow it down: Begin with a broad list of keywords related to your business, and then use keyword research tools to narrow it down to the most relevant and profitable keywords.

Use long-tail keywords: Long-tail keywords are longer and more specific phrases with lower competition and higher conversion rates. They also help to reach a more specific audience.

Use negative keywords: Negative keywords are keywords that you don't want your ad to show for. By identifying and adding negative keywords, you can prevent your ad from showing to the wrong audience, which can help to lower CPC.

Use match types: Match types allow you to control your keywords' relevance level. Use broad phrases, and exact matches to find the most relevant keywords and control your ad relevance.

Use keyword research tools: Many free and paid keyword research tools are available, like Google Keyword. These tools provide valuable insights into keyword trends, competition, and search volume, which can help you to identify the most relevant and profitable keywords.

Keep an eye on your keywords' performance: Monitor your keywords regularly and make adjustments as necessary. Pause or delete keywords that are not performing well and add new ones that show promise.

Use Ad Grouping: Ad grouping helps you to organize your keywords and ads into specific groups so you can easily see which keywords and ads are performing well and which ones need improvement.

By following these practices, you can ensure that you are targeting the most relevant and profitable keywords and improve the performance of your PPC campaigns.

Tools and resources for keyword research and optimization

For keyword research and optimization for Google Ads and Microsoft Ads, some popular tools include:

SpeedPPC: SpeedPPC offers an amazing selection of different keyword and spy tools to help you dominate your PPC campaigns.

Google Keyword Planner: This free tool offered by Google Ads allows you to research keywords, get historical statistics, and see the estimated bid and competition for each keyword.

Ahrefs Keywords Explorer: Ahrefs is a paid tool that offers a variety of keyword research and analysis features, including the ability to see the search volume, CPC, and competition for a given keyword, as well as related keywords and phrases.

SEMrush: SEMrush is another paid tool that offers keyword research and optimization features, such as the ability to see the search volume, CPC, and competition for a given keyword, as well as related keywords and phrases, and to track the performance of your own keywords over time.

Bing Keyword Research Tool: This free tool offered by Bing Ads allows you to research keywords, get historical statistics, and see the estimated bid and competition for each keyword.

These tools are specifically designed for PPC and can help you to manage and optimize your campaigns, track your performance, and make data-driven decisions.

Get Creative

Ad copy and creative play a crucial role in determining the success of a PPC campaign. The language and design of the ad can affect the click-through rate (CTR), which in turn affects the cost-per-click. By crafting compelling ads and creative that resonates with your target audience, you can increase the likelihood that they will click on your ad. This can lead to a lower CPC, as your ad will generate more clicks with the same budget.

Best practices for ad copy and creative

Keep it simple and clear: Use language that is easy to understand and avoid using industry jargon.

Use action words: Encourage clicks by using words like "buy", "get," and "try" in your copy.

Use numbers and statistics: Including numbers and statistics in your ads can make it more persuasive.

Test different copy and creative: A/B testing different copy and creative can help you identify the most effective ad.

Use Ad Extensions: Ad extensions like callouts, structured snippets, and location information can make your ad more informative and engaging.

Use dynamic ads: Use ads that automatically show different copy and creative based on the user's search query or browsing behavior.

Use Eye-catching images or videos: Use images or videos that are visually appealing to grab the attention of users.

Use ad customizers: Ad customizers allow you to insert dynamic text into your ads based on the user’s query, location, time of day, and more.

Use specific keywords: Use specific keywords in your copy that are relevant to your products or services.

Use Emotional Appeals: Use emotional appeals in your ads that can resonate with your target audience.

Campaign Structure and Management

Properly structuring and managing your campaigns can help ensure that your ads reach the right audience while keeping costs in check. Effective management of your campaigns can help you identify and eliminate wasteful spending by pausing underperforming keywords.

Additionally, this includes regular monitoring and optimizing your campaigns to ensure they are always running at their most efficient and effective level. Overall, a well-structured and well-managed PPC campaign can help you reduce your average CPC and improve your ROI.

SpeedPPC creates perfectly structured campaigns to help you succeed.

Best practices for campaign structure and management

Here are a few practices for campaign structure and management to lower down average CPC:

Organize campaigns and ad groups by theme or product category.

Utilize negative keywords to exclude irrelevant traffic from your campaigns.

Regularly review and adjust bids for specific keywords and placements.

Use automated bid strategies such as Target CPA or Target ROAS to optimize for conversions.

Utilize the A/B testing feature to test different copy and landing pages.

Monitor and analyze campaign performance regularly and make adjustments as necessary.

Keep an eye on Quality Scores, which can have an impact.

Use geographic targeting to reach only the most relevant audience.

Use audience targeting to reach specific segments of people.

Monitor your campaign's performance regularly and make adjustments as necessary.

Proper campaign structure and management can greatly impact your average CPC.

Lower Your Costs!

In summary, effectively managing a PPC campaign can help lower the average CPC. Using the right tools and resources, such as those specific to Google Ads and Microsoft Ads, and following best practices, you can fine-tune your campaigns to drive more efficient results. These strategies are essential for businesses to be able to reach their target audience in an effective manner and, at the same time, lower the cost per click.

Remember to monitor and adjust your campaigns to ensure you get the most out of your advertising spend. Feel free to seek help from experts if you need it.