5 Effective Ways To Reduce Your CPC

In the digital advertising world, Pay-per-click advertising focuses around an interest in how to lower CPC (cost-per-click). And the reason for this focus – if you are paying less for a click, then your cost per conversion (CPC) is also going to be less. Simple right? But not so simple. You should also understand how to reduce CPC.

How would you plan, and begin where, as there are so many factors that contribute to the cost per click. Just lowering your bid (which might seem the easiest) probably won’t do in the beginning of your campaign! What strategic steps can result in improving your rank without breaking the bank?

Did you know?: Overall click volume on the Google Search Network in Q4 grew 9% year-over-year, and CPCs for branded keywords on Google fell 13% year-over-year in Q3.5 Effective Ways To Reduce Your CPC

Here’s how to calculate CPC in Digital Marketing. Usually, the CPC is determined by the competitor’s bids. And as you might already be knowing that ad rank = Bid x Quality Score. So quality score is where we can work to have a lower CPC than the competitor, rank higher than them, and enjoy the financial success of the ad campaigns. Here we share some tips on how to reduce cost per click for your brand.


  • Pay attention to Relevancy

Tired of hearing this time and again? Well, while you might be tired, but trust me you shouldn’t be. Having high ad relevance contributes to high quality scores. Being relevant means your adverts, the keywords you have chosen, and your landing page are all talking the same and very closely related search terms a customer might be looking for.

To improve relevance, you might want to try this out:

  • Keep only one or two primary keywords to target for.
  • Make sure that the landing page features exactly what your ad promised the customers.
  • Create tightly themed ad groups.
  • Take the visitor to the relevant page even if you haven’t created a new landing page for the ad (while having a dedicated page is the best), rather than a home page.

Follow the relevancy recipe, and see how it works; then go ahead and repeat for other keywords. It is a tested tip for how to reduce cost per click Facebook or Google ads.


  • Use Negative Keywords

To understand this concept of negative keywords, let’s take an example – if you are creating ads for selling “doors and windows for commercial buildings”, you might want to add “doors and windows for residential buildings” to your negative keyword list. Because, for people who are looking for products for their own house may be searching for the term ‘doors and windows for building’, your ad might get triggered, they click on it, and then leave your page, driving up your CPC and bounce rate.5 Effective Ways To Reduce Your CPC

Managing negative keywords can considerably lower your paid search charges. It is one of the most essential tricks to understanding how to reduce cost per click Google ads. It’s a much wider concept than what is explained here, and you can read more on it here.


  • Click through rate (CTR)

CTR is a metric that shows how many people clicked on your ad. Higher CTR means that people are clicking on your ad because there’s something really engaging about it – it could be a compelling offering, your ad copy or even the CTA.

For Pay per Click campaigns, 2% CTR is average and a number above that is considered good.

Moreover, if more and more people are clicking, then engagement rate goes higher, which improves quality score, and reduces the cost per click. In fact, a good CTR creates a ripple effect, producing a whole sequence of positive results.


  • Lower your bids

Sometimes it may happen that you have followed all relevancy parameters and are getting a decent number of engagement and clicks on your ads. Even the quality scores are good. But you are paying the same CPC as before.

So once you are sure that the above steps are all taken into account, you can then try lowering your bids in small decrements. While doing so, keep observing your average position in the search results and ensure that it doesn’t suffer. It’d be interesting to see your costs per click go down while everything else remains the same.

But when applying this formula, understand that lowering the bid shouldn’t translate into low volume. If you have been successful in lowering the CPCs, keep measuring your ROI and ensure that it isn’t suffering either.


  • Use Ad Scheduling

Ad scheduling is one of the features of PPC advertising which has got a lot of potential to save your ad budget. You can set specific days and times of the day to run the ad. It is one of the tips provided when searching for how to reduce CPC on Facebook ads as well as Google.5 Effective Ways To Reduce Your CPC

Showing your ads all day can be a costly deal for you and may lower your ROI.

If you have observed for your business, the day and time of the day when you get the best response from your target audience, you can schedule to run your ads only for specific periods of the day and time combination. This will reduce the probability of getting irrelevant clicks which won’t convert and ultimately relevancy will contribute to a lower overall CPC.

If you want your Google AdWords campaigns to run more efficiently – saving costs and earning you more conversions but unsure how to reduce CPC, then join hands with an experienced Search Engine Marketing agency like SRV Media who have Google, Facebook Blueprint and Bing certified professionals to work with you. They either can start teaching you how to reduce CPC in Google ads or set up the entire campaign to work in your favour.

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