Reduce Your Pay-Per-Click Costs By 80%(A Step-by Step Guide)

If you’re spending money on PPC ads to drive traffic to your eCommerce website, keep in mind that getting the clicks is only half the story. Your ads aren’t effective if they fail to generate profits. The main reason that costs are increasing is down to more and more advertisers realising how powerful this channel is for their growth. Google Ads cost per click prices are on the rise. It’s all marketers seem to be talking about at the moment.

What Is Pay-Per-Click Advertising?

PPC stands for pay-per-click, a model of internet marketing in which advertisers pay a fee each time one of their ads is clicked. Essentially, it’s a way of buying.
You know that when the advertisement will display? It will appear only when the query for the keyword will match with the keyword list provided by the advertiser and also when the relevant content will be displayed by the content website. These types of advertisements are known as sponsored ads or sponsored links which appears above or adjacent to the search engine result pages. The basic formula through which the pay-per-click is calculated:

Pay-per-click ($) = Advertising cost ($) / Ads clicked (#)

Why PPC is Important for Digital Marketing?

PPC can generate traffic right away. It’s simple: Spend enough, get top placement, and potential customers will see your business first. If folks are searching for the key phrases on which you bid and you’ve placed a well-written ad, you will get clicks the moment the ad is activated.
Here are some simple things that you can do to increase your PPC ad views and lower your PPC at the same time. Let’s dive in:

#1 Analyze and Review Search Queries

You cannot craft an effective PPC campaign without analyzing the return of actual search queries. To ignore this important factor is to ignore the needs of your most valuable potential customers. If while examining these search queries, you discover that less desirable audiences may be triggering your ads, consider integrating negative keywords to reduce wasted ad spend. You may also stumble on new keywords that show potential for drawing relevant searchers and high performing ads. Assign a higher budget to these new keywords, as well as any existing keywords that have a proven track record of success.

#2 Target the keywords that have low bids

While targeting the keywords, find out keywords that have comparatively low bids as these keywords are bound to have lower PPC. Pay per Click of the keywords also depend on how competitive your industry is. Some keywords are extremely competitive and thus have high PPC. Try to avoid using competitive keywords and when you are looking forward to lower your PPC.

#3  Use Negative Keywords

Negative Keywords are those keywords that come to your rescue when you are facing high costs in your PPC Campaigns. Thee keywords acts like filters and filters out all the unwanted clicks. They prevent your ads from being triggered by irrelevant search queries that lowers your CTR. Negative keywords only display your ads in front of those people who are actually looking for your ads and are interested in your product/service.

This increases your CTR and as only quality traffic is being diverted to your ads, you tend to get an increased conversion rate. An increased CTR initiates an improved Quality Score that thereby reduces your Cost Per Click.

#4 Aim for 3rd or 4th Position

To decide the Ad Rank and the Cost Per Click, Google uses an auction system. However, there are a lot of advertisers who still think that being on the first position is the most profitable.

Although while being on the first position, your ad will get the best visibility and maximum exposure, but you might also end up spending more than what you are getting back. So, to save your costs, you should focus on being at the 3rd or 4th position.
Thus, work on making your keywords, ads and landing pages highly relevant.

#5 Don’t pay for ads that aren’t producing

Regardless of your strategy, you need to track and evaluate campaign performance continuously. Reducing non-productive spend frees up a lot of money that you can use to improve both click volume and sales.

#6 Spy on Your Competitors

There are many tools you can use to spy on your competitors’ PPC campaigns so you can see what’s working and what’s not. You can find out the keywords they’re ranking for, the offers they’re promoting, and the copy they’re using. Remember, driving traffic is only half the story. You also need to identify which ads are actually generating revenue. To do so, analyze longer-term trends to find out which ads are not only getting the clicks but also performing well in terms of time onsite and bounce rates.

Final Thoughts

The outlined points above are just a few tips to lower your PPC. There are other ways of lowering PPC such as conversion tracking, using as extensions, adjusting bids according to location, devices, day and times of the day. Lowering your PPC is just a part of your overall goal of reducing ad spend but it is not the ultimate one. Therefore, you should try to improve other aspects of your campaigns so as to make your AdWords campaigns more effective.

If you are looking for a way to bring your customers in quickly without any additional effort, then you should consider PPC or pay per click services.

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