Why is my Google Ads CPC (Cost Per Click) so high?

[DarylMaguire95]

I spend $1,200/month on Google Ads, targeting branded keywords and product categories, but my CPC averages $1.80, higher than my competitors. My Quality Score is between 6 and 7 for most ads.

What steps can I take to lower my CPC while maintaining ad visibility? Are there specific ways to improve my Quality Score or bidding strategy?

Pls answer with your experience. Thanks

[DaisyVo · Accepted solution]

Hi @DarylMaguire95 

It sounds like you’re doing a solid job managing your Google Ads, but a CPC of $1.80 could be optimized further. Here are actionable steps to help lower your CPC while maintaining (or even improving) your ad visibility:

1. Improve Your Quality Score

A Quality Score of 6–7 is decent, but there’s room to push it to 8–10. Here’s how:

• Refine Ad Relevance: Ensure your ad copy closely matches the keywords you’re targeting. If a keyword is “vegan leather bags,” mention it in the headline and description.
• Landing Page Optimization: Make sure your landing page is fast, mobile-friendly, and offers content highly relevant to the ad and keyword. Add the targeted keywords naturally on the page.
• Click-Through Rate (CTR): Write compelling, action-oriented ad copy to encourage clicks. Use numbers, offers (e.g., “20% off”), or urgency (“Limited Time”).

2. Segment Keywords More Specifically

• Use Exact Match Keywords: If you’re using broad match or phrase match, switch to exact match for high-cost keywords. This will reduce irrelevant clicks.
• Negative Keywords: Regularly analyze your search terms report to exclude irrelevant queries that might be inflating your costs.

3. Revisit Your Bidding Strategy

• Switch to Target ROAS (Return on Ad Spend): If you can track conversions accurately, this ensures you’re only bidding based on the return you expect.
• Bid Adjustments: Lower bids on devices, locations, or times where conversions are lower. Increase them where performance is strong.

4. Competitor Analysis

• Spy on Competitors’ Ads: Use tools like SEMrush, SpyFu, or Google’s Auction Insights to see how competitors structure their ads and what keywords they target. Adjust your strategy accordingly.

5. Focus on Long-Tail Keywords

• Long-tail keywords (e.g., “affordable vegan tote bags for women”) often have lower CPC and higher conversion rates because they attract users with clear intent.

6. Test and Refine Your Ad Copy

• A/B Test Ad Variations: Run different versions of ads to see which headlines, CTAs, or descriptions yield a better CTR.
• Include Ad Extensions: Use sitelinks, callouts, and structured snippets to improve visibility and CTR without increasing CPC significantly.

7. Audit Campaign Structure

• Group your keywords into smaller, tightly themed ad groups. This helps you write more focused ads, improving ad relevance and CTR, which can lower CPC.

8. Optimize for Mobile

• Check your mobile performance. If your ads perform poorly on mobile but have high costs, adjust your bids or create mobile-specific campaigns and ads.

Visual Example: A Sample Negative Keywords Strategy

If your brand sells “vegan leather bags” and you notice clicks for “genuine leather bags,” add “genuine” as a negative keyword to avoid irrelevant clicks. Here's a code snippet to add negative keywords:

- genuine

- real leather

- faux leather alternative

Final Thoughts

Tackling CPC involves a mix of refining your Quality Score, narrowing your targeting, and optimizing bidding strategies. Keep testing and iterating until you find what works best for your campaigns.

If you need any other assistance, feel free to reply and I will try my best to help.
Best regards,
Daisy

[Ads4seo]

To lower your CPC while maintaining ad visibility, focus on improving your Quality Score by ensuring ad copy aligns closely with targeted keywords, optimizing landing pages for relevance and speed, and enhancing CTR through compelling headlines and ad extensions. Refine your bidding strategy by experimenting with Enhanced CPC or Target ROAS, adjusting bids on high-cost keywords, and focusing on high-intent, low-competition terms. Utilize negative keywords to eliminate irrelevant traffic and test Phrase and Exact match types for better control. Additionally, monitor competitors using tools like Auction Insights to identify opportunities and refine your approach.

[sanjnalal]

Hi there DarylMaguire95, 

From what I can see your quality score is already decent. Are you using manual bidding? If you are, then I recommend switching to Enhanced CPC (I am assuming you are running google shopping ads. ECPC is not available for search and display campaigns) 

Further, you can experiment with Target ROAS (Return on Ad Spend) or Target CPA (Cost Per Acquisition) help Google prioritize conversions rather than clicks, often reducing CPC over time.

Check underperforming locations, devices or demographics (you could be losing money here). 

• Use location reports to identify areas with lower conversion rates and reduce bids for those locations.
• Decrease bids on mobile if desktop performs better.
• You can even adjust your bids for time of day (i.e. when users are most active). 

Lastly, add negative keywords as irrelevant clicks could be driving up your CPC. 

Hope this helps!