9 tips to reduce costs with Google Adwords – WAU

Reducing ad costs on Google Adwords does not mean stop investing, but improve performance. See how this strategy can bring incredible results to the business!

Is reducing cost in Adwords part of your business goals for the marketing industry this year? Know that this can be the ideal incentive for the team to increasingly deliver better ad campaigns on Google.

The idea is not to cut spending on the strategy, but to take a series of measures to achieve equally positive or even better results, paying less for each click. That is, the focus here is on optimizing performance.

Do you want to implement this philosophy more consistently in your actions? In this post, we will go through some important concepts and then we will list the best measures to decrease the cost with Google Adwords. Follow us!

How does the cost-per-click (CPC) dynamic work?

Google Adwords campaigns work like auctions and the reference to know what the ideal bid is how much the company is willing to pay for each click, or CPC.

In other words, the one that accepts to pay a higher CPC is highlighted in the search engine or Display Network, remembering that it is only charged if the user of the search engine clicks on the highlighted link.

Its calculation is simple. Simply divide the total cost of the ad campaign by the number of clicks delivered.

Example: a website that wants to promote a post about special products for an upcoming festive date may set a total budget of R $ 150.00 for your campaign. In this case, at the end of the action, if 100 clicks were generated, the CPC would have been R $ 1.50.

Daily budget

In campaign planning, it is possible to establish a daily budget amount. If the objective is to move and attract the target audience until the date of the party, it is necessary to ensure that they receive daily stimuli. Thus, setting a valid budget for the 24 intervals is essential.

In this case, the manager can set a daily budget of R $ 30.00. As users click, they spend part of that quota.

When it reaches its maximum value, the ad goes out of focus and only comes back the next day, with a new budget share to be spent.

Ideal keyword and competition

Another point that influences the cost per click and the performance of a campaign is its focus keyword, and it works exactly like the element that opens a connection between the Google user and your company.

Thus, to set up an efficient campaign, it is necessary to choose a keyword related to the theme of the content to be highlighted.

The big question is that other companies may have the same interest in it, and there is real competition in the auction.

Broader keywords tend to have higher value and more advertiser interestafter all, they can cover different types of business, such as “women’s fashion”.

It does not specify whether it is clothing for cold, heat, haute couture or fast fashion, for example.

But, by improving the quality of the keyword a little more and directing the search focus to “fantasy store”, it is possible to have less value and competition.

Clickthrough Rate (CTR)

Calculating CTR is also simple. Simply divide the number of clicks obtained in a campaign by the number of times it was shown. Thus, if, in total, 300 hits were counted for a total of 10,000 views, the clickthrough rate will be 0.03, or 3%.

Considering all this, it is possible to understand that strategies that optimize these elements can decrease the cost of CPC and, with this, make the campaign more profitable. It is the case of choosing a keyword that is more appropriate and capable of converting more.

Companies have already understood that digital marketing is an excellent acquisition and conversion tool, but it is not enough to just increase their funds. You need to spend them wisely.

According to Content Trends 2018, 58% of companies plan to increase their investments in content marketing in 2019. This includes creating strategy, content and your outreach efforts, like Google ads on search, the Display Network and YouTube.

Complete Google Adwords Guide

What are the 9 best tips to reduce cost in Adwords?

The above elements work as a mathematical equation, that is, the order of their factors does not change the product, but the slightest change in their values, more or less, produces a major change in the final result.

By choosing a keyword that is more aligned with the content and strategy of the campaign, for example, your CTR can increase, as well as the amount of leads generated.

1. Segment subjects

One of the most fundamental points in digital marketing strategies is to promote maximum personalization with the potential consumer.

Thus, creating a content calendar based on a semi-expert representation of the client – persona -, choosing keywords that are relevant to the public and optimizing the site considering the greatest use on mobile devices, for example, are actions for the lead feel a personal connection with what is being offered.

The same goes for ads made on Adwords. Using the same ad for different keywords is completely disregarding the user’s experience with the content.

He needs to believe that everything was designed with the sole purpose of satisfying his needs, and finding the same ad on different searches or displays will be much more invasive and detrimental to your perception.

So, if the idea is to improve the conversion and reduce the costs with Adwords, it is necessary to create different and personalized ads according to the subject that will be covered in the link.

A toy store can have different ad segments to talk about the same niche and even age group.

A good example would be the following.

Ad Group 1: Plush Toys in Londrina

Key words:

  • plush;
  • Teddy bear;
  • plush toys;
  • antiallergic plush;
  • stuffed animals in Londrina.

Advertisement:

Meet the brand X antiallergic plush animals

Ad Group 2: Toys for Young Children in Londrina

Key words:

  • toys for babies;
  • toy for babies in Londrina;
  • teddy bears for babies etc.

Advertisement:

Best toys for babies for less than $ 100.00

2. Optimize ads

To optimize a set of ads, you need to evaluate its history. Thus, understanding elements such as CPC, CTR, competition and conversion is essential. Another knowledge that needs to be well internalized is that of Return on Investment (ROI).

Its traditional calculation consists of:

ROI = (profit – costs) / costs

However, in the case of the ROI of Adwords campaigns, the costs that are subtracted from the profits include those from the product or services plus those used for the ads.

So, considering the toy store in the previous topic, we have:

  • sale price of the stuffed animal = R $ 90.00
  • product cost = $ 50
  • amount invested in Adwords = R $ 100.00
  • realized sales = 2

ROI = (R $ 90.00 x 2) – {(R $ 50.00 x 2) + R $ 100.00} / (R $ 50.00 x 2)

ROI = – 0.2 or a 20% loss

In this case, the optimization of this campaign to reduce costs in Adwords is paramount, after all, the company is suffering loss with its disclosure instead of reaping profits.

It is necessary to review the choice of keywords, evaluate the group of ads carried out, consider inverting the words and all the other elements that can reverse the situation. All of this can be managed through A / B tests, that is, making corrections, evaluating their effects and then adjusting the next element.

3. Optimize for day and time performance

Another very efficient way to reduce the costs of Adwords ads is to enhance your performance considering the days and times when the volume of searches and use of the target audience is most intense.

If a certain day or period has low demand, it is possible to decrease the daily budget or even the CPC bid for that period. There is no need to stop the strategy, but just adjust it according to demand. This will ensure greater effectiveness for the investment, without waste.

4. Segment geographically

Even if a company or e-commerce serves the entire national territory, it is recommended to create separate geographically campaigns so that its results are analyzed independently.

To do this, it is necessary to thoroughly know the profile of buyers and create separate campaigns by region.

A sportswear e-commerce, for example, can use Adwords Editor to create three or four copies of the same campaign and target each one to a specific region.

They will have the same persona represented in the defined ad group, the same content to be highlighted and keyword, but each region will have different CPC performance, and that guarantee a more punctual correction in those that are below the planned.

5. Increase the quality score

The quality of an ad is related to three factors: CTR, keyword strength and landing page optimization.

Like this, improving any of these elements will make the so-called Quality Score lower your cost-per-click and bring better conversions.

To better understand this relationship, just remember that, for Google, user experience and satisfaction are the most important. That is, even offering companies the possibility to advertise their products and content, if they are not of quality, they will have less intensity.

Therefore, it is essential to reinforce the keyword strategy, and of course, create content and pages of relevant, original, responsive destinations that meet the other guidelines for good SEO.

6. Exclude negative search terms

Google users use some search terms that can lead to a business’s ad without actually matching the keywords that the campaign wants to drive.

Thus, it is necessary, literally, to separate the chaff from the wheat. Otherwise, a few clicks on the ad will be the product of a mistake by the strategy and the user. In terms of search experience and investment in the campaign, it is bad for both sides.

Therefore, when registering the ad in Adwords, it is already possible inform what would be the unwanted terms in the negative words field.

7. Isolate high-performance keywords

In the Adwords ads dashboard, it is possible to evaluate which keywords defined for an ad are bringing the best results.

Considering which are the best, it is possible to create a new ad, now optimized by using only the best keywords from the previous one. To make this strategy even more efficient, when configuring CPC bidding, it is important to calibrate more positively for the new one, directing the useful flow from the old one to this improved version.

If the CPC of the first will have a weight of other keywords with low results, the new strategy will have a much more efficient cost, balancing the results of the two in general.

Dossier of Keywords

8. Use a targeted langing page

The landing page is the address to which the ad will take the customer if he decides to click on the Google display or in the search results, for example.

For the user, it seems obvious that the display image or the description of the link directs him to the exact address corresponding to what is being informed. However, some companies place links on the central page of their e-commerce or websites so that the potential customer knows all their products and differentials.

Although the intention is good, this is very harmful to the user experience and can even be penalized by the Google algorithm.

Also considering the aspect of the purchase journey, if the user clicked on an ad about a certain product or service, he is already more aware of his differentials.

In other words, considering the marketing funnel, he is already in the process of considering the purchase, and taking it to a general langing page will cause him to step back or even give up on the purchase.

9. Increase CTR

To increase the click-through rate, the ad must be attractive and more prominent than the competition. Thus, investing in attractive titles and calls can generate greater user interest from the search result.

By increasing clicks, the quality of the ad will also increase, which will also improve CPC performance. That is, it is a chain reaction.

Thus, the strategy of planning the ad must be carefully done, considering the information to be transmitted, the audience, their needs, keywords that match their research, and of course, the optimization of the campaign and the landing page.

How can a good SEO strategy affect Adwords costs?

SEO strategies can bring several benefits to the company’s website and, of course, in its digital marketing actions such as investments in Adwords. This is because it is a tool that, above all, seeks the best combination of content and lead.

That is, the objective of SEO is not to attract more visitors, but those that are ideal for the company’s product or service. Combined with investments in Google Ads, this personalized content formula is sprayed more intensely, making one complement the result of the other.

Thus, SEO ensures from the best choice of keyword for the ad sets to the guarantee that the landing page, your landing page, will be the most relevant and optimized for that ad profile.

Collaterally and yet very importantly, SEO also helps to reinforce brand authority, since it puts your link and content in evidence, precisely, in the audience that it seeks to reach.

Reducing costs in Adwords will also allow the company to increasingly intensify its digital presence, after all, investments in strategy and its results are much more easily managed.

That is, it is an essential tool for marketing planning that every company should use, considering the schedule and making the appropriate alignments with other actions and events of the brand.

Do you want to know how to do your planning more efficiently and increase your online visibility to win the top position on Google? So, download our e-book “SEO 2.0: the complete guide” right now!

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