Unlike conventional advertising, digital ad campaigns based on Google ads allow you to choose the right strategy according to your campaign goal and budget. Cost per click or CPC in Google ads plays the key role in determining which strategy you should adopt to achieve your campaign goal, without exceeding your budget.

What is CPC and why is CPC important?

Cost-per-click (CPC) is the highest amount that you (the bidder) agree to pay to Google Adwords for every click on your ad by the net surfers (prospects). Google will place your ad according to this amount (there are other factors as well). If your CTC is high, your ad will most likely find a place on a high viewing page relating to your product category.

Keyword bidding is also extremely important for the success of your advertisement.

Because Google is a search engine, keywords are central to almost all search marketing. Bidding for the right keywords holds the key in paid strategy.

If you have a cakeshop, for example, you can ensure that people searching for keywords like “cakes near me” or “chocolate cakes near me ” see your advertisements.

In CPC bidding campaigns, you set a maximum cost-per-click bid or simply “max CPC” – which is the maximum amount you’re willing to pay for a click on your ad (unless you’re using bid adjustments or Enhanced CPC).

Your maximum cost per click (CPC) is the highest you’ll typically be charged for a click, but you’ll often be charged less – sometimes much less. The final amount you are charged for a click is referred to as your actual CPC. As more clicks are received for your ad, the cost-per-click will decrease. You can take this as a sign that your campaign is successful.

You’ll be able to choose between manual bidding (where you set your own bid amounts) and automatic bidding (let Google set bids to try to get the most clicks within your budget). CPC pricing is also known as pay-per-click pricing (PPC).

How Google Adwords cost-per-click calculator works

This determines how much Google Ads will cost your company, and how much will it cost you to acquire a customer?

Google Ads (previously AdWords) operates on an ad auction model, which means that there is no set price for a single ad.

Companies create campaigns, and the amount they are willing to pay influences their ad rank (which determines whether their ad wins and appears or not), as well as relevance and other factors.

Every keyword and display ad placement holds an auction for every new user. This means that Google Ads pricing isn’t preset but varies according to what your competitors are bidding for the keywords, locations, and audiences you select.

Keywords can cost as little as $ 0.5 or as much as a couple hundred dollars, depending on your industry, location, and competition.

You’ll end up spending a lot of money if you target high-competition keywords with high commercial intent (and potential value). However, the potential ROI is much higher.

How to decrease CPC in Google Ads?

As an advertiser, your target should be to make the most at a lower cost. There are some measures that help lower cpc in Google ads to reduce the cost of your paid campaign. It requires a good knowledge of what factors can keep your CPC low. Below are some insights on how to lower costs per click:

#1. Use display ad builder

You can use Display Ad Builder to have Google pull images from your website and do about 80% of the work of creating display ads with your colors and branding.

#2. Avoid mobile apps

In-app activity consumes a significant portion of the average mobile user’s time on their device. Mobile is fantastic, but not all mobile activity is beneficial to your GDN campaigns. In fact, unless you’re specifically targeting app users, you might want to avoid them entirely.

#3. Use Google web designer for HTML ads

In 2020, Google rebuilt its Web Designer, adding a slew of new features as well as improved integration with other Google products. The most exciting feature is the interactive, animated HTML5 ad builder.

When compared to static image ads alone, animated HTML 5 ads will garner more attention and clicks.

#4. Identify specific demographics and target in-market audiences

In-market audiences are people whose search and/or browsing history indicates they may be interested in a particular product or service. Someone who has been searching for “flowers” and visiting flower retailer websites, for example, could be identified as being interested in Mother’s Day gifts. In-market targeting is also effective for products/services with longer purchasing cycles.

#5. Boost your remarketing efforts

Remarketing ads are one of the most effective methods for increasing your relevance and Quality Score, and thus lowering your CPCs. Visitors to your website are tagged so that you can target them with ads as they navigate the Internet, browsing sites, watching videos, checking their email, and so on.

Source- Fluidscapes
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