9 Ways to Reduce Google Ads CPA

Google Ads services are an incredibly effective way to advertise to consumers, but it comes with its own set of challenges. With so much information available to advertisers and a wide range of techniques that can be combined, it’s easy to feel overwhelmed and unsure where to begin.

For advertisers, a critical concern is how to allocate their budget to ensure they are not wasting resources on campaigns that do not result in conversions. In other words, they want to reduce their Cost Per Acquisition (CPA).

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In this article, we’ll provide you with nine practical tips to immediately reduce your Google Ads cost per acquisition while also increasing conversions and quality scores. We’ll also share some quick tips that can help you reduce your overall spend while maximizing the efficiency of your advertising budget.

1. Use Negative Keywords
2. Use Proper Keyword Match Types
3. Pause Poorly Performing Keywords
4. Review Campaign Structure
5. Optimize Your Landing Page
6. Review Ad Extensions
7. Optimize Your Ad Rank and Quality Score
8. Analyze your campaign performance using Google Analytics
9. Identify Low-Value Geographies

Below you can find more information about each one.

1. Use Negative Keywords

One effective way to lower your Google Ads CPA is by using negative keywords. Negative keywords are queries that you don’t want your ads to show up for and can be used to reduce the number of people who see your ad.

For instance, if you were running a shoe business and had the keyword “sneakers” in your campaign, people searching for “high heels” might also see your ad, even though they’re not interested in buying sneakers. This wastes your budget because you end up paying for clicks from people who are unlikely to become customers. Fortunately, the solution is straightforward: add negative keywords!

To implement this strategy, you can create a negative keyword list for each campaign, which will apply to every ad group you run under that account. You can also add negative keywords at the account level for broader exclusions, or at the ad group level for a more granular approach.

To get started, begin by listing the most obvious irrelevant keywords that could trigger your ads. As you run your campaigns, analyze search terms to identify other queries that are triggering your ads and determine whether they are relevant to your business or not. By continuously analyzing and updating your negative keyword list, you can optimize your campaigns’ relevancy and reduce your CPA.

Here are some other examples:

• Job: if someone searches for something with the word “job” in it, it’s likely they’re looking for employment opportunities instead of a product or service. By adding “job” as a negative keyword, your ads will not appear when users search for terms that contain “job openings” or “jobs near me”.
• Cheap: Similarly, if someone searches for something with the word “cheap” in it, it’s likely they’re looking for less expensive options of that product. It’s recommended to avoid using these terms unless you offer discounted products.

2. Use Proper Keyword Match Types

In addition to using negative keywords, utilizing proper match types is just as crucial for effective advertising. It’s essential to be familiar with the various keyword matching type options as it can help you run better ads than most competitors. These match types can help you broaden or narrow down the search terms based on your campaign goals.

For instance, if you’re selling iPhone 14 Pro Max Screen Protectors, you wouldn’t want to show up for broad keywords such as “screens” or “iPhones” because people searching for iPhones may not be interested in your product. Similarly, if you are a dental office located in Brooklyn, NY, you don’t want to pay for a click by someone searching for broad keywords such as “office” or “dental” as they might be looking for dental supplies and not necessarily for a dental office.

Google offers three common match types for keyword targeting:

1. Broad match: This type matches your ads with any keyword that is included in your list, without using quotation marks or brackets. This approach is often not recommended as it can result in a waste of your advertising budget and a higher cost per acquisition (CPA).
2. Phrase match: By using quotation marks around your search terms, this type indicates to Google that you want phrase matching. This method is effective as it shows your ads for the most relevant terms without missing out on potential customers. For example, if your search term is “iPhone 14 Pro Max case,” your ads will show up for phrases like “Red iPhone 14 Pro Max case” or “Case for iPhone 14 Pro Max case.” By combining it with a negative keyword list, you can get excellent results.
3. Exact match: By using brackets around your keyword, this match type will only show your ads for the exact search query. However, this is only recommended for phrases that you know will not have a lot of variation, as even slight differences in search terms by potential customers may exclude them from seeing your ads. This method is an effective way to get clicks only on terms that you want to show without much variation.

   

3. Pause Poorly Performing Keywords

If you find that despite using negative keyword lists and employing the appropriate match types, certain campaigns or ad groups are still failing to deliver the desired results, it’s essential to take action and pause poorly performing keywords. Regularly auditing your Google Ads campaigns and making data-driven decisions regarding keyword performance can significantly impact your CPA. Here are some key points to consider:

• Identify Poor Performers: Continuously monitor the performance of your keywords to identify those that are not generating leads or conversions. Analyze metrics such as click-through rates (CTRs), conversion rates, and cost per conversion to gauge their effectiveness. Use Google Ads’ reporting and analytics tools to gain insights into keyword performance and identify underperforming keywords.
• Quality Score Analysis: Evaluate the quality scores of your keywords. Poorly performing keywords often have lower quality scores, indicating that they may not be relevant to users or failing to meet their expectations. By pausing such keywords, you can eliminate low-quality traffic and allocate your budget to more promising avenues.
• Cost-Benefit Analysis: Consider the cost-effectiveness of each keyword. If a keyword consistently incurs a high cost per conversion without generating a satisfactory return on investment, it’s a strong indication that pausing it would be prudent. Focus on keywords that bring in valuable traffic and have a positive impact on your campaign’s performance.
• Seasonal or Temporary Pauses: Keep in mind that the performance of keywords can fluctuate based on various factors such as seasonality, industry trends, or specific promotional periods. If a keyword is underperforming temporarily, it may be more effective to pause it for a certain period rather than permanently removing it. This allows you to reallocate your budget and focus on more promising keywords during the off-peak period.
• A/B Testing: Before pausing a keyword entirely, consider running A/B tests to validate its performance. Create variations of your ad copy, landing pages, or targeting settings to experiment and improve the keyword’s performance. A well-executed test can provide valuable insights and help determine if pausing the keyword is indeed the best course of action.
• Constant Optimization: Pausing poorly performing keywords should be an ongoing process. Continuously evaluate and update your campaigns to ensure that your budget is allocated to keywords that deliver results. Regularly conduct keyword research to identify new opportunities and replace underperforming keywords with more promising alternatives.

By actively managing your Google Ads campaigns and promptly pausing poorly performing keywords, you can prevent wasting your advertising budget on ineffective keywords. This enables you to optimize your ad spend, improve your CPA, and allocate resources to the keywords that have the highest potential for success. Regular monitoring, analysis, and adjustment are key to maintaining a high-performing campaign and achieving your advertising goals.

4. Review Campaign Structure

As you review the performance of your Google Ads campaigns, take a closer look at your campaign structure. The way your campaigns are organized can greatly impact their performance and ultimately affect your cost per acquisition. Here are some key considerations to consider:

• Ad Group Size: Evaluate whether your ad groups are appropriately sized. Ad groups that are too large can make it challenging to create targeted and relevant ad copy for each keyword. Conversely, ad groups that are too small may limit your reach and make it difficult to gather meaningful data. Strive for a balance where each ad group consists of tightly themed keywords and allows for the creation of tailored ads.
• Keyword Performance: Analyze the performance of individual keywords within your ad groups. Identify high-performing keywords that are generating conversions or driving valuable traffic. Conversely, pay attention to underperforming keywords that may be consuming a significant portion of your budget without delivering the desired results. Adjust your bids, ad copy, or even consider removing less relevant keywords to optimize your campaign performance and improve your CPA.
• Relevance and Exposure: Examine whether certain keywords with strong performance potential are being overshadowed by less relevant ones. It’s possible that these high-value keywords are not receiving adequate exposure, impacting your campaign’s success. Consider allocating more budget or adjusting bids to ensure that the most valuable keywords have a higher chance of appearing in search results, thus increasing their visibility and potential for conversions.
• Goal Realignment: Regularly reassess your campaign goals to ensure they align with your overall objectives. For example, if your primary objectives involve both brand awareness and lead generation, it might be necessary to create separate campaigns for each goal. By segmenting your campaigns based on objectives, you can craft specific ads and tailor your targeting strategies accordingly. This approach ensures that the right ads are displayed to the right audience when they search for relevant terms, resulting in improved ad targeting and better overall campaign performance.

By structuring your campaigns thoughtfully and aligning them with your goals, you can optimize your ad targeting and achieve better results. A well-organized campaign structure increases the chances of delivering relevant ads to interested users, which can lead to higher click-through rates, improved quality scores, and ultimately a lower CPA.

5. Optimize Your Landing Page

Optimizing your landing page is a critical step in improving the performance of your Google Ads campaigns. By enhancing the content, design, and user experience of your landing pages, you can increase conversions, lower your CPA, or achieve both simultaneously. Here are some key points to consider when optimizing your landing page:

• Relevance and Alignment: The success of a landing page depends on its alignment with the needs and interests of your target audience. Ensure that your landing page closely reflects the messaging and offer presented in your ads. The more relevant and consistent the experience from ad click to landing page, the higher the chances of conversions. Align the content, visuals, and call-to-action (CTA) on your landing page to match the intent of the user and the value proposition of your offer.
• Clear and Compelling Messaging: Craft concise and persuasive messaging on your landing page that clearly communicates the benefits and value of your offer. Use compelling headlines, subheadings, and bullet points to highlight key information. Incorporate persuasive language that appeals to the emotions and needs of your target audience. Keep the content focused, easily scannable, and free from distractions to keep visitors engaged.
• Engaging Visuals: Utilize high-quality and relevant visuals on your landing page to enhance the overall user experience. Use images, videos, or infographics that effectively convey your message and demonstrate the value of your offer. Visual elements should be attention-grabbing, professional, and directly related to your product or service. Visuals can play a crucial role in capturing visitors’ attention and driving them towards taking the desired action.
• Streamlined Conversion Process: Simplify the conversion process on your landing page to minimize friction and encourage users to take action. Use a clear and prominent CTA that stands out from the rest of the page. Limit the number of form fields to the essentials, making it easy for visitors to provide their information. Streamline the steps required to complete a purchase or sign-up, removing any unnecessary barriers or distractions. A seamless and user-friendly conversion process can significantly increase your conversion rates and lower your CPA.
• Mobile Optimization: Ensure that your landing page is fully optimized for mobile devices. With the increasing use of smartphones, a significant portion of your audience is likely to access your landing page from mobile devices. Make sure the page loads quickly, is responsive, and provides a seamless mobile experience. Optimize the layout, font sizes, and CTA placement for smaller screens, making it easy for mobile users to navigate and convert.
• A/B Testing: Conduct A/B tests to optimize various elements of your landing page. Test different headlines, visuals, CTAs, layouts, or even the length of the page to identify what resonates best with your audience. Analyze the data from your tests to make informed decisions on which elements to keep, modify, or remove. A/B testing allows you to continually refine your landing page and improve its performance over time.

By optimizing your landing page to align with the needs and interests of your target audience, you can significantly improve the performance of your Google Ads campaigns. A well-designed and persuasive landing page increases the likelihood of conversions, leading to lower CPAs and a higher return on investment (ROI). Regularly monitor your landing page’s performance, make data-driven adjustments, and continuously optimize it to achieve the best possible results.

6. Review Ad Extensions

Ad extensions (also called assets) are valuable enhancements that can be added to your Google Ads to provide additional context and improve the performance of your campaigns. Reviewing and optimizing your ad extensions is an effective way to increase the visibility of your ads, improve click-through rates (CTRs), and reduce your cost per click (CPC). Here are some key points to consider when reviewing your ad extensions:

• Sitelink Extensions: Sitelink extensions allow you to include additional links within your ad, directing users to specific pages on your website. Review your sitelink extensions to ensure they are relevant and aligned with the search intent of your target audience. Consider linking to important product categories, promotional pages, or high-converting landing pages. By providing more options and directing users to relevant pages, you can improve user engagement and potentially lower your CPC.
• Callout Extensions: Callout extensions provide an opportunity to highlight key features, benefits, or unique selling points of your offerings. Review your callout extensions and ensure they effectively communicate value to potential customers. Consider using strong selling points, special offers, competitive advantages, or other compelling information that differentiates your business from competitors. Well-crafted callout extensions can grab users’ attention, increase CTRs, and potentially improve your quality score, leading to lower CPCs.
• Location Extensions: If you have a physical business location, consider utilizing location extensions to show people where your business is located. Review and update your location information to ensure accuracy and relevance. This extension can be especially beneficial for businesses that rely on local foot traffic or have specific geographical targeting goals. Displaying your business address can enhance trust and encourage users to visit your store, potentially reducing CPCs and improving conversion rates for local searches.
• Call Extensions: Call extensions allow users to click on your phone number directly from the ad and call your business. Review your call extensions to ensure that they are set up correctly and that the displayed phone number is accurate and actively monitored. Enabling call extensions can improve user experience and facilitate direct engagement, leading to potential conversions and reduced CPCs, especially for users who prefer immediate phone contact.
• Promotion Extensions: If you have ongoing discount offers or promotional codes, consider utilizing promotion extensions. Review and update your promotion extensions with the latest offers to entice potential customers. This extension can help attract users seeking deals or incentives, potentially increasing CTRs and driving more cost-effective conversions.
• Seller Ratings: Seller ratings extensions showcase advertisers with high ratings based on customer reviews and feedback. Although you cannot directly control these ratings, it’s worth monitoring and responding to customer reviews across different platforms to maintain a positive reputation. Positive seller ratings can improve trust and credibility, potentially leading to higher CTRs, better quality scores, and reduced CPCs.

Regularly reviewing and optimizing your ad extensions is crucial for improving the performance of your Google Ads campaigns. By utilizing relevant and compelling extensions, you can increase the visibility and appeal of your ads, attract more qualified clicks, and potentially reduce your CPCs. Experiment with different extensions, analyze their impact on campaign performance, and make data-driven adjustments to achieve the best possible results.

7. Optimize Your Ad Rank and Quality Score

Optimizing your ad rank and improving your quality score is crucial for achieving better results and reducing your cost per acquisition in Google Ads campaigns. Ad rank determines the position of your ads in search results and the price you pay for clicks. By focusing on improving your quality score, you can enhance the relevance and effectiveness of your ads. Here are some key points to consider when optimizing your ad rank and quality score:

• Keyword Relevance: Ensure that your keywords are highly relevant to your ad text and landing page. Conduct thorough keyword research to identify the most relevant and targeted keywords for your campaigns. Align your ad groups with specific themes or products to maintain relevance and improve the user experience. When your keywords closely match the search queries of users, it increases the chances of your ads being shown, improving your quality score and ad rank.
• Ad Copy Optimization: Craft compelling and targeted ad copy that aligns with the intent of your target audience. Highlight the key benefits, unique selling points, or special offers in your ad text. Experiment with different messaging techniques, including the use of emotional appeals, calls-to-action, and value propositions. By continuously testing and optimizing your ad copy, you can improve your click-through rates and quality score, which can lead to lower CPCs and improved ad rank.
• Landing Page Relevance and User Experience: The landing page associated with your ads plays a crucial role in determining your quality score. Ensure that your landing pages are highly relevant to your ad text and provide a seamless user experience. Optimize your landing pages for fast loading times, clear navigation, and compelling content. Make sure that the landing page provides the information and call-to-action that users are expecting when clicking on your ad. A positive user experience on your landing page can lead to higher quality scores, better ad rank, and improved conversion rates.
• Ongoing Monitoring and Optimization: Ad rank and quality score are not static metrics. Continuously monitor and optimize your campaigns based on performance data. Regularly review your account, ad groups, keywords, and ad copy to identify areas for improvement. Test different ad variations, landing page elements, and targeting options to optimize your campaigns for better ad rank and quality score. By making data-driven adjustments, you can improve the effectiveness of your PPC campaigns and achieve a lower CPA.

By focusing on optimizing your ad rank and improving your quality score, you can enhance the performance of your Google Ads campaigns. This can result in higher click-through rates, improved ad positions, reduced CPCs, and ultimately, a better return on investment. Regular monitoring, analysis, and optimization are key to maintaining a strong ad rank and achieving your advertising goals.

8. Analyze your campaign performance using Google Analytics.

Google Analytics is a powerful tool that should be used when running any ads, as it provides valuable insights into your ad performance. You can use Google Analytics to evaluate how your ads are performing and make educated decisions about your ad spend. This is particularly useful when running multiple campaigns simultaneously, as it enables you to determine which campaigns are driving the most traffic and conversions.

To analyze your Google Ads campaign performance using Google Analytics, you can follow these steps:

1. Link Google Ads and Google Analytics: Make sure your Google Ads and Google Analytics accounts are linked. This allows you to access Google Ads data within Google Analytics.
2. Enable auto-tagging in Google Ads: Auto-tagging appends a unique tracking parameter to your ad URLs, which allows Google Analytics to identify the traffic coming from your Google Ads campaigns. To enable auto-tagging, go to your Google Ads account, click on “Settings,” then “Account Settings,” and make sure the “Auto-tagging” option is enabled.
3. Set up events in Google Analytics: Goals help you track and measure specific actions or conversions on your website. Identify the events that align with your Google Ads campaigns, such as form submissions, purchases, or newsletter sign-ups. Set up these events in your Google Analytics account.
4. Access Google Ads reports in Google Analytics: Once your accounts are linked, you can access Google Ads reports in Google Analytics. Go to your Google Analytics account, navigate to the “Acquisition” section, and click on “Google Ads” to view campaign performance data.
5. Create custom reports and segments: Google Analytics provides flexibility to create custom reports and segments to analyze your Google Ads campaigns further. You can filter data based on campaigns, ad groups, keywords, and more to gain deeper insights into performance.
6. Monitor attribution models: Google Analytics offers different attribution models that assign credit for conversions to different touchpoints in the user journey. Explore different attribution models to understand how your Google Ads campaigns contribute to conversions.
7. Use secondary dimensions and advanced filters: To gain more insights, utilize secondary dimensions and advanced filters in your reports. This allows you to slice and dice the data to analyze campaign performance based on different dimensions such as device type, geography, or demographics.
8. Set up custom alerts: Google Analytics allows you to set up custom alerts to monitor specific metrics and receive notifications when they exceed or fall below certain thresholds. This helps you stay informed about any significant changes in your campaign performance.

By following these steps and exploring the various features and reports in Google Analytics, you can effectively analyze your Google Ads campaign performance and make data-driven decisions to optimize your campaigns and reduce their CPA.

9. Identify Low-Value Geographies

Identifying low-value geographies in your Google Ads account is an important step in reducing your cost per acquisition and optimizing your campaign performance. By reviewing relevant metrics and analyzing geographic data, you can gain valuable insights into the areas where your campaigns are underperforming and make informed decisions to improve your results. Here are some key points to consider when identifying low-value geographies:

• Analyze Performance Metrics: Start by reviewing performance metrics such as CPA, conversion rates, click-through rates (CTR), and return on ad spend (ROAS) for different geographies. Identify the geographies that have a high volume of traffic but are associated with a high CPA. These regions may be consuming a significant portion of your budget without delivering satisfactory results. By focusing on these areas, you can take targeted actions to optimize your campaigns and reduce unnecessary costs.
• Consider Market Relevance: Evaluate the relevance of your products or services to the target audience in each geography. Consider factors such as local market demand, competition, cultural preferences, and language considerations. It’s possible that certain regions may not align well with your offerings or have a low demand for your products. In such cases, it may be more beneficial to redirect your budget and resources to geographies where your campaigns are likely to yield better results.
• Adjust Targeting Settings: Once you have identified low-value geographies, consider adjusting your targeting settings to optimize your campaign performance. This can include refining your location targeting by excluding or narrowing down specific regions that consistently yield high CPAs. By focusing your advertising efforts on regions that have a higher potential for conversions, you can improve the efficiency of your campaigns and reduce wasteful ad spend.
• Customize Ad Messaging and Offers: Tailor your ad messaging and offers to better resonate with the target audience in specific geographies. Consider cultural nuances, local preferences, and language variations when creating your ad copies. By customizing your messaging to align with the interests and needs of users in each geography, you can increase the relevance of your ads and improve the likelihood of conversions.
• Ongoing Monitoring and Optimization: Continuously monitor the performance of different geographies within your Google Ads account. Regularly analyze the performance metrics and compare the results across regions. Keep a close eye on changes in user behavior, market conditions, and competition that may affect the performance of your campaigns in different geographies. Adjust your targeting, bidding, and messaging strategies accordingly to optimize your campaigns for better results.

By identifying low-value geographies and taking targeted actions to optimize your campaigns, you can reduce your CPA and improve the overall performance of your Google Ads campaigns. Regular monitoring, analysis, and optimization are key to maintaining a strong campaign performance and maximizing your return on investment.

Conclusion

In conclusion, reducing your cost per acquisition in Google Ads requires a comprehensive and strategic approach. By implementing the various strategies discussed in this article, you can optimize your campaign structure, improve the performance of your ads, and achieve better results within your desired budget.

In this dynamic digital advertising landscape, success requires ongoing evaluation, optimization, and adaptation. Stay proactive, keep an eye on market trends and user behavior, and refine your strategies accordingly. By implementing these strategies and maintaining a data-driven approach, you can achieve a lower CPA and drive better results for your Google Ads campaigns, ultimately maximizing your return on investment. You’ll be surprised how much they can improve your campaign performance, and the additional time investment will be well worth it!

About Leo Pinon

Léo Pinon is an International Marketing Specialist at Go Fish Digital in the Raleigh, NC office.