How to Reduce CPC Rate for Google Shopping Campaign

How about spending half of your marketing budget and still getting the same amount of traffic from Google Shopping you used to have?

Cost per Click, widely known as CPC is a popular phrase in paid digital marketing especially Google Adwords. And “how to reduce CPC?” Is probably one of the most frequently asked questions about the paid search.

There are some effective tactics that are popular to reduce your CPC rate, and you’ll probably find them in every article that is talking about CPC tips. But these tactics can backfire if they are not used in a systematic order.

In this article, we’ll walk you through the entire process focused only on reducing your CPC for Google Shopping Campaign in a way that doesn’t negatively affect your incoming traffic.

Relevancy

Relevancy is the most important factor in reducing Google Shopping CPC cost. Creating tightly grouped ads and having very specific keywords per ad group is known as the best practice.

Google Shopping algorithm is designed in a way that, ranks up the relevant ads on top. Your keywords should be extremely relevant to your ad. It will lead you to have a good quality score which is directly related to reducing the CPC.

You should make a specific landing page for the keywords and ad groups. That makes the ad relevant to the landing and ranks up on search engine results.

Quality Score

Google Adwords uses Quality Score which is the rating of the quality and relevance of your keywords and your ads. It is used to determine your cost per click (CPC). Quality score is also used to determine your ad rank in the ad auction.

If you’ve ensured relevancy, congratulations! Because a good quality score is considered as a side effect of relevancy.

Creating highly targeted ads with the most relevant keyword increases the CTR (Click through Rate). And high CTR causes the quality score to go up. That is the moment when the ad ranks up on Google Shopping search with a lower CPC! Wordstream discussed in detail how to increase Quality Score, give it a look!

Click-Through Rate:

Click through rate aka, CTR is responsible for ranking up and staying on the top on the search and shopping engines like Google Shopping. CTR shows how often people see your ad and clicks it. It is a great way to have a clear idea of how well your keywords and ads are performing.

You probably have a great CTR for one of your ads, but don’t just settle down for that. Keep creating newer ads to compete against your best ads!

CTR is highly related to your ad’s relevancy. For example, if someone is looking for a pair of sneakers of a specific brand and your ad of sneakers of another brand is shown because of the keywords, that person is not likely to click on your ad. And that is how your Click Through rate is decreased.

There are always chances for improvements. Changing some words, creating different strategies to drag customers’ attraction can make an impact on your CTR! Here’s what Neil Patel suggests to increase your CTR.

Use Long-Tail Keywords

In the case of highly competitive industries, the average CPC for keywords can be extremely expensive. But it doesn’t mean you can’t compete.

Avoid using high-cost keywords, long-tail keywords are there to help you out. Usually, it takes just a few searches on related themes to get your desired long-tail keywords.

The advantage of using them is they tend to have a high-quality score. And when you have a good quality score you can maintain a good average position with a low CPC.

Ad Scheduling

Ad Scheduling lets you decide when you want your ad to be shown. It has a great impact on reducing your expenses on Google Shopping CPC but often overlooked.

Showing ads 24/7 can do nothing but reduce your ROI. Instead of wasting huge money on odd hours, you can just research when your potential buyers come online and you get the most response.

By scheduling ads, you can save as much as half of your total expenses on an ad. Scheduling your ads will prevent irrelevant clicks and increase the conversion rate that leads you to achieve a low CPC rate.

Location Targeting:

Location targeting is pretty straightforward. It lets you show your ads in the areas where you can find your potential customers.

It’s extremely important that you research the location where your customers reside. It can be an entire country or a city or even a region.

Geotagging helps a lot in increasing your CTR that eventually ends up reducing the Cost Per Click.

Lower Your Bids

Now that you have a decent position on search results as your quality score is going up you can decide to lower your CPC rate. But don’t do it all at once!

Slowly start to decrease the bids. Look at your average position, keep lowering it down as long as it doesn’t affect your position.

Surprisingly you’ll discover that you can go a long way down with keeping everything else constant.

Negative Keywords

Last, but one of the most important things to keep in mind is using negative keywords. Analyzing your search query report you’ll find the keywords that your ads are showing for.

Now, not every keyword is relevant to your ads. Use negative keywords to prevent your ads from being triggered by queries that aren’t relevant.

Using a Negative Keyword not only helps you to decrease your CPC but also prevents lowering down your CTR.  And most importantly you will stop paying for the keywords you don’t want to pay for. Here is a video of negative keywords to let you know how and why you should use them.

Decreasing your expenditure on Google Adwords definitely helps you focus on other important aspects of your marketing plan. But remember, reducing CPC isn’t the goal of your Ad campaign. After all, increasing your sale is the ultimate goal, right?

So your prime focus should be getting potential customers and driving more traffic to your website by holding a good position on Google Shopping! Here are few couples of tips for you to Skyrocket your ecommerce sale!

Apply these methods to your ad campaign and let us know how it went! I discover another way to reduce the CPC rate, even more, don’t forget to tell us here in the comment section! Good luck!

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