Lowering the Cost Per Click (CPC)

Cost Per Click (CPC) is a type of bidding under which you pay for each click on your ads. You decide what your CPC (also known as PPC) bid is, telling Google how much you are willing to pay per click. When someone clicks on your ad, it won’t cost you any more than the maximum CPC bid amount that you set. You can choose either manual bidding, where you choose your own bid amounts, or automatic bidding, where Google chooses bid amounts that are within your budget. CPC is a good bidding choice if your goal is to have people visit your website.

Google typically requires a specific CPC for each keyword for an ad to show, which depends on the popularity of the keyword among other advertisers. If the CPC is too low, Google may show the status of the keyword as “Below first-page bid estimate.” This means that the CPC is too low for Google to show your ad. You can avoid this by raising your CPC.

There are several ways to lower your CPC:

  • Creating great ads. Producing higher quality ads will result in higher click-through rates, which typically lowers your cost-per-click. With a higher click-through rate, Google assumes your ad is relevant to the keywords for which you are advertising.
  • Taking advantage of long-tail keyword traffic. For example, if you were managing a PPC account for a travel company, most pay-per-click managers know to create ads using key terms like “Cancun hotels” or “Cancun resorts.” However, if you conduct quality keyword research and go after long-tail keywords like “cheap Cancun hotels” or “all-inclusive Cancun hotels,” your ads will be more refined/targeted, helping you receive more relevant traffic, raising your CTR and lowering your CPC.
  • Creating relevant landing pages. The landing pages you select for your ads should directly correspond to your keywords and ads. If someone is searching for “Cancun hotels” and you land them on the travel company’s homepage that mentions nothing about Cancun, they are more likely to leave your site. Google monitors how quickly searchers who click on your ad and visit your site leave to click on a competitor’s ad to find what they were looking for, which can drive your CPC up and negatively affect your Quality Score.
  • Improve your Quality Score. The combination of the three methods mentioned above to lower your CPC will dictate your Quality Score. The higher your Quality Score, the lower your CPC.

Lowering the Cost Per Click (CPC)
Learn everything you need to know about Raising Quality Score on the next page.