How to Lower Your Google Ads CPC for Your eCommerce (2024)

The Secrets Behind High CPCs

Understanding the root causes of high CPCs is critical to addressing this issue completely. Here are the main factors that contribute to high CPCs:

Ineffective keyword selection is often the primary cause of high CPCs. Bidding on overly broad or highly competitive keywords can result in intense competition, raising the cost per click without ensuring significant returns. For example, bidding on generic keywords such as "shoes" or "electronics" is likely to result in inflated CPCs due to the high level of competition in these extremely popular categories.
Here are better examples:

• Instead of bidding on "shoes," consider bidding on:
  
  - "running shoes for women"
  
  - "hiking boots for women"
  
  - "vegan leather sneakers"
  
  - "sustainable athletic footwear"
  
  - "comfort sandals for travel"
  
  

• Instead of bidding on "electronics," consider bidding on:
  
  - "wireless headphones for iPhone"
  
  - "4K TVs under $500"
  
  - "affordable laptops for college students"
  
  - "wireless earbuds with noise cancellation"
  
  - "smartwatches for Android users"
  
  
  By targeting more specific keywords, you'll attract a more targeted audience and increase your chances of conversion. This will ultimately lead to lower CPCs and higher ROI.
  
  
  

If your ads fail to resonate with the search intent of potential customers, they are less likely to generate clicks, leading to wasted ad spend. Effective ad copy should be tailored to the specific search queries of users, highlighting the unique value proposition of your products or services.
Here are some examples of good and bad ad copy:

• Bad Ad Copy:
  
  1. Broad and generic: "The best shoes ever!"
  
  2. Contains irrelevant keywords: "High-quality headphones for the best price!" (This ad is irrelevant for someone searching for "wireless headphones for iPhone.")
  
  3. Does not highlight benefits: "Save money on shoes!" (This ad doesn't explain why the shoes are worth saving money on.)
  
  4. Uses excessive exclamation points: "Click here for the most AMAZING shoes ever!" (This ad is too gimmicky and will likely turn people off.)
  
  

• Good Ad Copy:
  
  1. Targeted and specific: "Comfortable running shoes for women who want to beat their personal best."
  
  2. Contains relevant keywords: "Wireless headphones for iPhone with noise cancellation."
  
  3. Highlights benefits: "Elevate your workout with our breathable and supportive running shoes."
  
  4. Uses a clear call to action: "Shop now and save 20%!"
  
  
  Here is an example of how to improve the bad ad copy:
  
  
  - Bad Ad Copy: "High-quality headphones for the best price!"
  
  - Good Ad Copy: "Wireless headphones for iPhone with noise cancellation for only $99.99!"
  
  This ad is more specific, relevant, and highlights the benefits of the product. It is also more likely to resonate with the search intent of potential customers.
  
  
  

When users click on your ad, they are directed to the landing page. If your landing page does not match the ad messaging and does not provide a seamless user experience, it may discourage visitors and hinder conversions, increasing CPCs. A well-designed landing page should be relevant to the ad copy, have a clear call to action, and highlight the benefits of your products or services in an engaging way.

• Bad Landing Page:
  
  1. Not relevant to the ad copy: The landing page is for a product that is completely different from the product advertised in the ad.
  
  2. No clear call to action: The landing page does not have a clear and prominent call to action that tells users what to do next
  
  3. Not visually appealing: The landing page is poorly designed and does not look professional.
  
  4. Slow loading speed: The landing page takes too long to load, which can frustrate users and make them leave.
  
  

• Good Landing Page:
  
  1. Relevant to the ad copy: The landing page is closely related to the product advertised in the ad, and it clearly explains the benefits of the product.
  
  2. Clear call to action: The landing page has a clear and prominent call to action that encourages users to take the desired action, such as clicking a button to learn more or making a purchase.
  
  3. Visually appealing: The landing page is well-designed and uses high-quality images and fonts.
  
  4. Fast loading speed: The landing page loads quickly, which makes it easy for users to navigate and engage with it.
  
  
  Here is an example of how to improve the bad landing page:
  
  
  - Bad Landing Page: The landing page for a pair of running shoes shows a picture of a pair of hiking boots. The call to action is "Shop Now!"
  
  - Good Landing Page: The landing page for a pair of running shoes shows a picture of the shoes themselves. The call to action is "Buy Now and Get 20% Off!"
  
  This landing page is more relevant to the ad copy, has a clearer call to action, and is more visually appealing. It is also more likely to encourage users to take the desired action, such as making a purchase.
  
  
  

Identify negative keywords to prevent ads from showing to irrelevant users, minimizing wasted ad spend. Negative keyword research tools can help you identify irrelevant search terms and exclude them from your campaigns.

• Negative Keywords:
  
  - Broad and generic: "cheap"
  
  - Redundant: "shoes" when you're already targeting "running shoes for women"
  
  - Not specific enough: "free" (This negative keyword will exclude all search queries that include the word "free," even if they are relevant to your products or services.)
  
  

• Positive Keywords:
  
  - Specific: "women's shoes" when you're only targeting women's shoes
  
  - Phrase match: "used running shoes"
  
  - Exact match: "buy hiking boots"
  
  
  Here is an example of how to improve the negative keywords:
  
  
  - Negative Keyword: "cheap"
  
  - Positive Keyword: "discount shoes"
  
  This keyword is more specific and will only exclude search queries that are specifically looking for discounted shoes.
  
  Here is an example of how to improve the redundant negative keywords:
  
  
  - Negative Keyword: "shoes", targeting -> "running shoes for women"
  
  - Positive Keyword: "women's running shoes"
  
  This keyword is more specific and will only exclude search queries that are looking for running shoes for women.
  
  Here is an example of how to improve the not specific enough negative keywords:
  
  
  - Negative Keyword: "free"
  
  - Positive Keyword: "free running shoes"
  
  This keyword is more specific and will only exclude search queries that are explicitly looking for free running shoes.
  
  By using keywords strategically, you can save money on your Google Ads campaigns and improve your return on investment.
  
  

Your bidding strategy plays a significant role in determining your CPCs. Automated bidding strategies, such as Target ROAS or Enhanced CPC, can help optimize bids in real-time based on user signals and conversion data. However, if these strategies are not properly configured or monitored, they can lead to inflated CPCs.

Here are some examples of bad and good bidding strategies:

• Bad Bidding Strategies:
  
  1. Maximum CPC: This bidding strategy simply sets the highest bid that you're willing to pay for a click. It can lead to inflated CPCs if your bids are too high, especially for competitive keywords.
  
  2. Default CPC: This bidding strategy uses Google Ads' default bidding algorithm, which may not be optimized for your specific goals or campaign settings.
  
  3. Low CPC: This bidding strategy can lead to low-quality clicks and poor conversion rates. It's important to set bids that are competitive enough to attract qualified leads or conversions.

• Good Bidding Strategies:
  
  1. Target ROAS: This bidding strategy aims to achieve a specific return on ad spend (ROAS) by adjusting bids based on conversion data. It's a good choice for businesses that want to maximize their profits from Google Ads.
  
  2. Enhanced CPC: This bidding strategy automatically raises bids for high-quality leads and lowers bids for low-quality leads. It can help improve your conversion rates and overall return on investment (ROI).
  
  3. Manual CPC: This bidding strategy gives you more granular control over your bids. It's a good choice for businesses that have a lot of experience with Google Ads and want to fine-tune their bids to specific keywords or audiences.
  
  
  By choosing the right bidding strategy for your business needs, you can help ensure that you're getting the most out of your Google Ads campaigns and achieving your marketing goals.
  
  Here are some additional tips for optimizing your bidding strategies:
  
  - Monitor your campaign performance regularly and make adjustments as needed.
  
  - Find negative keywords to exclude irrelevant traffic from your campaigns.
  
  - Use location targeting to reach the right audience.
  
  - Use device targeting to reach users on the devices they're most likely to use.
  
  - Use ad extensions to provide more information about your products or services.
  
  
  

Seasonal fluctuations can also significantly impact CPCs. During peak shopping seasons, such as the holiday season or Black Friday, there is a surge in demand for certain products, driving up CPCs.

Here are some examples of seasonal fluctuations that can impact CPCs:

• Holidays: During major holidays such as Christmas, Thanksgiving, and Black Friday, there is a surge in demand for a wide range of products, including toys, electronics, apparel, and home goods. This increased demand can lead to higher CPCs, as advertisers compete for clicks from potential customers.
  
  Back-to-school: The back-to-school season, which typically runs from July to September, sees a spike in demand for school supplies, clothing, and electronics. This can lead to higher CPCs for advertisers targeting these products and services.
  
  Valentine's Day: Valentine's Day is a popular time for couples to shop for gifts, which can drive up CPCs for flowers, chocolates, jewelry, and other romantic products.
  
  Mother's Day: Mother's Day is another popular holiday for gift-giving, which can lead to higher CPCs for flowers, chocolates, spa treatments, and other gifts for moms.
  
  Father's Day: Father's Day is a popular time for men to receive gifts, which can lead to higher CPCs for grilling equipment, tools, sports equipment, and other gifts for dads.
  
  Summer: The summer season is a popular time for travel, so CPCs for hotels, flights, and vacation rentals can be higher during this time.
  
  Spring: Spring is a time for new beginnings, so CPCs for landscaping services, home improvement products, and gardening equipment can be higher during this time.
  
  
  By understanding the seasonal fluctuations that can impact CPCs, you can better plan your campaigns and adjust your bids accordingly.

In the first part of this blog post, we discussed the common factors that contribute to high CPCs in Google Ads and gave some examples of both good and bad. We talked about how inefficient keyword selection, irrelevant ad copy, poor landing pages, a lack of negative keywords, ineffective bidding strategies, and seasonal fluctuations can all contribute to higher costs per click.

In this section, we'll go over specific strategies you can use to tame your CPC and optimize your Google Ads campaigns for better results.

Shift your focus from broad keywords to long-tail keywords, which are less competitive and more relevant to specific products or services. Long-tail keywords target a more specific audience, which leads to higher conversion rates and lower CPCs. Instead of bidding on "shoes," you could focus on more specific keywords, such as "running shoes for women" or "hiking boots for women."

Here are some good and bad examples of keywords.

Improve ad copy to a compelling and informative level, matching potential customers' search intent and encouraging them to click. Use strong calls to action, point to relevant benefits, and highlight the unique value of your products or services.

Here are some good and bad examples of ad copies.

Landing pages should be optimized for conversions, aligned with ad messaging, and provide a seamless user experience that encourages purchases. Simplify the checkout process, provide clear instructions, and display social proof to improve the user experience and convince users to buy.

Here are some good and bad examples of landing pages.

Identify negative keywords to prevent ads from being displayed to irrelevant users, reducing wasted ad spend. Negative keyword research tools can help you identify and remove irrelevant search terms from your campaigns.

Here are some positive and negative examples of keywords.

Use Google Ads' automated bidding strategies, such as Target ROAS or Enhanced CPC, to optimize bids in real time based on user signals and conversion data. These strategies can help you maximize conversions while keeping costs under control.

Here are some good and bad bidding strategies.

Partnering with an PPC agency, such as WeDooSo, can provide invaluable advice and expertise for optimizing your Google Ads campaigns. WeDooSo can support you in identifying the underlying causes of high CPCs, implementing effective strategies, and monitoring campaign performance for continuous improvement.

Here is a PPC agency.

High CPCs can be a frustrating challenge in your Google Ads journey, but they are not impossible to solve. Understanding the root causes and implementing strategic approaches will allow you to manage your CPC and optimize your campaigns for better results. You can lower your CPCs, increase your ROI, and unlock the potential of Google Ads for your e-commerce business by embracing long-tail keywords, writing compelling ad copy, optimizing landing pages, identifying negative keywords, using automated bidding strategies, and partnering with a PPC agency like WeDooSo.