Based on that equation, decreasing your CPA requires identifying areas where you may boost conversions while cutting expenditures. But things aren't quite that simple without the best SEO Company.
First of all, each campaign and keyword in a particular Google Ads account likely has a different impact on the value of conversions for your company. The age of your campaigns and attempts at conversion rate optimization, your total budget, and the resources you have are further considerations.
Therefore, reducing your CPL will probably need a variety of activities being made on a variety of campaigns inside your account. Let's look at it.
What Should the Cost Per Lead Be?
Depending on the business you're in, there are many different definitions of what a "good" cost per lead is.
Additionally, because some offers have a higher value than others, you might see different CPLs for various keywords and campaigns within your account.
How to Cut Google Ads' Cost Per Lead:
There isn't a set method for reducing your cost per lead that applies to all accounts, as we just explained. Conversion rates must indeed be raised and/or expenses must be cut, but there are several approaches to each of these.
Analyze Your Limited-By-Budget Campaigns:
By decreasing your bids for your "restricted by budget" campaigns, you may cut your expenditures in one method. The campaign status "Limited by budget" in Google Ads indicates that while your bids are high enough to qualify you for a limited number of auctions, you do not have the money to participate in all of those auctions.
You could: for campaigns with this status.
Boost the Budget:
You can raise your budget if this is a high-value campaign and you have the money to do so. This can result in more conversions, but keep in mind that your CPL won't alter if your spending grows faster than your conversions.
Reduce Your Bids:
By doing this, you'll be allowed to participate in cheaper auctions and get clicks at lower ad places. Simply monitor your conversion volume. It is not worthwhile if your lower bids cut your CPA by 30% while simultaneously lowering your average position and conversion volume by 50%.
You may consider lowering bids or budgets in lower-value campaigns if one of your higher CPL campaigns is a high-value campaign and is not budget-restricted to lower your account's overall CPL.
Increase Your Quality Score By:
Your cost per click may be reduced by a lower bid, which will also reduce your CPL as a whole. But how can a lesser price win the Google Ads auction? An excellent Quality Score. Google rewards quality ads with lower costs per click according to the way the Google Ads auction operates.
You must comprehend each of its three elements if you want to raise your Quality Score:
Click-Through Rate Anticipated:
Utilize the advice of the best SEO in Malaysia to raise your anticipated CTR by employing ad extensions, ad customizers, and bettering your ad text.
Using Landing Pages:
The important concept here is to make sure your landing pages are reliable and beneficial to the individuals who click on your advertisement. We'll discuss more landing pages later. Utilize our advice to optimize your landing pages and reduce your CPC.
Ad Significance:
This entails making sure that your keywords, related advertisements, and landing pages are all closely aligned.
Strengthen the Structure of Your Accounts:
Your account structure describes how you aggregate your keywords and advertisements into ad groups, and those ad groups are subsequently organized into campaigns.
A suitable account structure aids in lowering CPA in the following ways:
- Ad groups with the same topic will guarantee that your keywords, advertising, and landing pages are closely related, increasing relevance and consequently Quality Score.
- With the appropriate planning, you can make sure that you're providing Google with the sufficient and consistent data it needs to optimize your bids and control your expenses. Automated bidding methods are configured at the campaign level.
- Funds are set at the campaign level, so when your campaigns are arranged appropriately, you can allocate budgets more simply.
- You may more readily identify CPL trends and allocate your money based on how the keywords in those themed ad groups are doing when your keywords are put together into themed ad groups.
Adjust Your Bids
Check your campaigns to see if any money is being wasted on targeting or campaign settings.
You can modify your bids while utilizing manual or enhanced CPC bidding based on:
- Device
- Demographic
- Audience
- Networks
- Date and time
Exclude certain segments or modify your offers if conversion rates are falling during a specific hour, network, region, or device.
Although you have far less flexibility to change bids when utilizing an automated bidding method, you may change targets. You may define a goal CPA, for instance, if you're utilizing the Max Conversions bidding method.
Setting a target CPA is a terrific approach to keeping expenses under control if you know how much a conversion must cost to be profitable.
Just be careful to choose a reasonable goal. Your CPL will increase if you set your aim too low since Google can have trouble locating auctions that fit your criteria, which might lead to fewer impressions, fewer clicks, and finally fewer conversions.
Improve Your Keyword Usage:
As was indicated in tip #3, having a well-organized account structure makes it simpler to see trends in keyword performance. The following are some trends to watch out for and steps you may take to minimize your CPL.
Maintain Your Effective Keywords:
Increase the budget for campaigns using keywords with good conversion rates and low cost per click.
Keep a List of Unfavorable Keywords:
Utilize the search terms report to find keywords with the following:
- Many clicks, but few or no conversions
- At least 3 conversions, but at a CPA much over your goal
- A reasonable number of impressions, but a low click-through rate
Keywords for Pausing:
You could also wish to halt any keywords whose CPAs are two times greater than the average for your account. If you want to save past data, you might pause them rather than eliminate them.
Make Sure There Is Enough Keyword Volume:
A higher Quality Score is great, but if your high QS keywords have a really low volume, it won't have much of an impact on your CPL figures.
Improve the Look of Your Landing Pages:
If you are using highly relevant advertising and landing pages to target the proper audience but are still not getting any results, you may need to perform some landing page optimization. It is possible to have best practices for landing pages in place that are relevant, helpful, and load quickly yet still have space for improvement. You may experiment with and improve a variety of options, including:
Forms:
Form field count, placeholder text, and CTA are all present
Buttons:
Colors, language, and button count
Copy:
Emotional framing, text color and size, quotes, and dynamic content
Images:
Faces with favorable or negative feedback, screenshots from platforms
Added Characteristics:
Live chat, video, and dynamic content
Conclusion:
Making sure your conversion monitoring is up to par is the final tactic for lowering your cost per lead in Google Ads.
As you can see, decreasing your cost per lead in Google Ads requires a variety of changes to your account, depending on which campaigns are the most effective, have the most growth potential, or might use better. Examine your campaigns to see which tactics are most appropriate for your account.