Cost per Click is basically the price that you pay to Google or any other search engine when someone clicks on your ad.
It measures how much a click on your ads cost. It is one of the foundational metric of the Ad Campaigns and acts as a building block for the further understanding of the Ad Campaigns.
CPC are different for various keywords, ads, campaigns, etc. so you need to have good understanding of Ad bidding strategy to optimize your CPC.
Usually the CPC are determined by the bidding competition.
It is the great metric to understand the basic level of campaign costs and the financial success of your ad campaigns.
Likewise in any other business the costs are meant to be kept low, same is the case with AdWords. As the name suggests, Cost per Click is the the cost that you incur when someone clicks on your ad. So as a rule of thumb, it should be kept low.
Given below are some tips that you need to apply so as to reduce your Cost per Click in AdWords.
1. Add Long Tail Keywords
Long tail keywords are those keywords that have low search volume and a clearly identifiable search intent.
The more generic a keyword is , the more people bid on it and therefore the higher is the bid.
On the other hand Long Tail Keywords are specific keywords that have low search volume which means that they are not prone to irrelevant search queries and hence do not waste your ad spend.
Long Tail Keywords tends to have a higher Quality Score and having a higher Quality Score is the most effective way to lower the CPC.
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 CPC. Cost per Click of the keywords also depend on how competitive your industry is. Some keywords are extremely competitive and thus have high CPC. Try to avoid using competitive keywords and when you are looking forward to lower your CPC.
Also, switch your bidding from automatic to manual because manual CPC bidding gives you more control over your CPC.
3. Use Negative Keywords
Negative Keywords also help in lowering the CPC. They prevent your ads from being triggered by irrelevant search queries that can lower your CTR.
A healthy CTR is important because a lower CTR would lower your Quality Score thereby increasing your CPC.
They let your ads show up to those people who are looking for your ad and are interested in your product/service.
Hence, by avoiding all the irrelevant search queries, negative keywords helps your CTR to increase that improves your Quality Score and lowers your Cost per Click.
4. Aim for 3rd or 4th position
Google uses an auction system to rank the ads and decide the Cost per Click of each ad.
As an online advertiser, you should also try to aim your ads for at least 3rd or 4th ad position.
To aim for 3rd or 4th ad position you will have you will have to work upon the relevance of your keywords, ad copy and the landing page.
Google determines the ad rank on the Quality Score and the Max CPC.
Here, you are focussing on lowering your CPC, so to improve your ad rank you have to first improve your Quality Score.
Higher the ad position means higher the Quality Score and higher Quality Score always lowers your CPC.
The ad rank and the Quality Score are interconnected. A rise in Quality Score leads to a rise in Ad rank and vice versa.
