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How can you lower your CPC


How can you lower your CPC for advertising campaigns?

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First of all, let’s understand the CPC. CPC often referred to as cost-per-click, is how much you’ll pay for each click in a PPC or pay-per-click advertising campaign. You will be able to keep your marketing budget on track when you monitor your CPC. Because it allows you to decide how much (on average) you will pay when someone clicks on your ad.

When you decide to spend there are numerous goals one can set for the campaign,

  • Increasing brand exposure by driving impressions
  • Increasing traffic on your website by driving clicks
  • Increasing leads by driving conversions
  • Increasing sales by driving conversions

You can plan as for how many ads you can run at what cost per click to stick to your budget with the help of monitoring the CPC for your ad campaign.

The CPC formula is below:
Cost per click = (Cost to advertiser) / (Number of clicks).

Why it’s so important to calculate your CPC
Let’s understand why it’s so important to calculate CPC. Let’s say that if your CPC is too high, You would not get postive returns on investment (ROI) for your business. Advertising expenses easily add up and you might find your business in financial trouble if you don’t keep track of digital marketing metrics like CPC.

Say for example you are running a fashionable clothing shop and you decided to place an ad for your various styles of fashionable clothes. If you only receive a few clicks on your ad, and your CPC is exceptionally high, you’ll likely lose more money advertising the product than you’ll make on actual product sales. This could easily turn into a negative ROI of your company, which is not a good sign as you see a negative ROI, that means your marketing campaign isn’t as successful as it should be. And you’re slowly loose out on your online business leads as regards to cost effectiveness for the ad campaign.

So lets understand further in our post as how you can lower your CPC.

How can you lower your CPC?

There are a few ways you can lower your CPC, but we’ll talk about two of the most effective tactics.

1) Use of LONG-TAIL KEYWORDS
Long-tail keywords are underused — mostly because company owners feel nobody is searching for those long tail keywords.

Long-tail keywords, compared to short-tail keywords, have more phrases and are far more detailed. For example, instead of targeting the term “Fashion Clothes” a long-tail version of that same keyword might be “Buy Fashion clothes Online at Best Prices” or “Latest Catalogue of Women Clothing”.

You’re right to believe that this term gets far fewer searches than its generic counterpart, “Fashion Clothes” but the magic of long-tail keywords is that the users searching for them are typically ready to convert and are the right target audience.

Someone searching for “Fashion Clothes,” for example, could be in the searching for write up on trends in fashion clothes. They’re trying to learn more about fashion clothes trends or may be something else.

When someone searches for a “Buy Fashion clothes Online at Best Prices,” on the other hand, this query signifies that someone is looking for exactly to buy the fashion clothes for himself or herself.

Long-tail keywords cost less to target because fewer users are searching for them. But what most business owners don’t realize is that even though these keywords receive fewer searches, the searches they do receive come from qualified leads.

Targeting long-tail keywords is an excellent strategy for lowering your CPC because you’ll spend less on each click but still receive a positive ROI.

2) LOWER YOUR BIDS
The second approach to lowering your CPC is to reduce your bids. This approach might seem like a no-brainer, but some company owners don’t realize that they might be bidding too high for their proposed keyword.

Do your keyword research properly via Google free tool ‘Google Keyword Planner’, you can guage and calculate an average CPC for your selected keywords, and then decide how much you are prepared to spend for an ad clicks. You also need to be sure that whatever keywords and bid you have selected is appropriate to produce a good ROI.


What affects your CPC?
There are a variety of factors impacting the CPC. The key factor which effects the CPC are mention below,

1. MAX BID
Max bid is how much you are ready to pay every time someone clicks your ad. If you want your ad to be placed on Top of any advertiser with a higher ad rank or quality score, you will have to put a reasonable maximum bid.

2. QUALITY SCORE
Google determines your Quality Score and gauges it on a scale of 1 to 10. The quality score depends on things like click-through rate(CTR), the performance of past campaigns, and more. You will end up paying less to earn a top ad position if you have a high quality score.

3. AD RANK
Google calculates Ad Rank and uses them to determine whether or not your ad will be included in search engine results. Google calculates this metric using your bid amount, ad quality at auction, Ad Rank thresholds, the context of a search query, and the anticipated impact of ad extensions.


3 PPC bid management factors to consider

When you’re trying to manage your bid amount for PPC, it is difficult to know how to set the best bid amount for your campaign. You want to get the most out of your campaign, but you don’t want to spend too much to try and get leads or conversions.

It is difficult to know how to set the best price for your campaign as you try to manage and control the bid amount for PPC. You certainly want to get the best out of your campaign, but at the same time you don’t want to spend too much to try and get leads or conversions.

1. Average CPC of your keyword
While doing Google Ads bid management, the average CPC of the chosen keyword is the main aspect that must be taken into consideration. Keywords come at a different cost depending upon the keyword volume and the level of competition.

2. Your budget
You have to be mindful of your budget if you run an advertisement campaign. The budget you allocate will dictate how and when you can afford to run the campaign.

3. Your return on investment (ROI)
A main component of your campaign is your return on investment (ROI). The goal is to get a return on your investment when you start a Google advertising campaign. If you want your campaign to be through, you have to figure out what you want from your campaign.

PPC ads is a powerful way to reach more people interested in your products or services for your company. When you start optimizing your ads PPC bid strategy, you will help your business achieve good results.



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