To run ads on search engines like Google, you place bids for your ad to display in particular search queries. In other words, you compete with other advertisers for a keyword. But did you know that you can also compete against yourself without knowing it? It’s called keyword cannibalization.
Before your ad competes with others in an automated keyword auction, an internal auction between your own keywords/relevant keywords takes place within your Google ads account. Google search needs to know how your ads rank among each other before it can rank them among ads by other businesses targeting the same keyword.
Because we live in an age of infobesity, where everyone overloads the amount of information on the web in an attempt to rank on top, it’s easy to fall victim to keyword cannibalization without realizing it. To help you avoid it, this article will go over what exactly keyword cannibalization is in pay-per-click (PPC) advertising, why it’s bad, its 3 different types, and steps you can take to avoid it.
In PPC advertising, keyword cannibalization refers to when you have two or more campaigns targeting the same search query in search results/pages ranking. In other words, you have multiple ads competing for the same keyword or two or more pages. It’s considered “cannibalization” because it’s as if you are taking a “bite” out of your own ad margins and results.
Search engines like Google search/ search engine results page automatically show the ad they deem most relevant based on its ad rank. Typically, ad rank is calculated by multiplying the maximum cost-per-click (CPC) bid with the ad quality score (ad rank = max CPC bid x quality score). When you have two or more separate ads competing for the same keyword, it splits your results. Your click-through rates (CTRs), links, and content are split across multiple ads.
Of course, it’s only keyword cannibalization if the intent behind the multiple pages/multiple ads is the same—to direct leads to a particular landing page etc. If you run different ads that share a keyword but have different goals, this is not keyword cannibalization (though you might consider consolidating your ad campaign goals).
Keyword cannibalization is nearly always unintentional. Essentially, you’re asking the ad platform’s algorithms to rank your competing ads. Often, one ad has higher ranking signals than another and will win the ad space. However, if there is no clear winner, none of the ads will rank as well as they might have, ruining each other’s ability to perform.
Keyword cannibalization cripples your PPC campaign. As your ads compete for the same keyword, the flow of traffic generated by them is broken. An ad might match for a keyword one week and not another, and you may see dramatic fluctuations in traffic. More importantly, keyword cannibalization leads to rising CPC costs, decreasing conversions, and diminishing page authority. Basically, it causes you to serve worse ads at a higher cost.
There are 3 types of keyword cannibalization in PPC: keyword overlap, geographic overlap, and PPC-SEO overlap. We’ll explain all three in detail so you can understand what you’re up against.
So far, we’ve explained keyword cannibalization in terms of keyword overlap. Keyword overlap refers to when two or more of your ads target the same keyword. In many cases, you may have an ad group targeting multiple keywords/multiple pages, one of which unintentionally overlaps with a keyword in another ad group. Usually, one ad outranks the other and it may not even be the one you most want to show. So make sure you organize your ad groups carefully.
In PPC campaigns, you not only bid on keywords but on geographic areas. And unfortunately, overlapping geographic areas can also cause keyword cannibalization. For example, if one of your ads targets a city and another targets that city’s entire country without excluding the city, you end up with two ads that target keyword for the same city & multiple urls. Or perhaps you run PPC ads for two stores in the same area with overlapping radiuses. In both cases, you unnecessarily pump up the ad auction with your own ads. Plus again, the winning ad may not even be the one you most want to run.
Finally, your PPC traffic can overlap with organic traffic. Organic traffic refers to any visits to your website that you don’t pay for. So if a regular search on Google leads someone to your web page, it’s considered organic traffic. You can increase your organic traffic through search engine optimization (SEO) strategies. If you already rank high in search engine results pages (SERPs), spending on PPC ads will have diminishing returns and may even be a waste of money. You’re already ranking in the SERPs, so paying to appear in the promoted results section has diminishing returns. Plus, some users prefer clicking on organic results over sponsored results anyway.
Now that you know the different ways keyword cannibalization can harm your PPC campaign, let’s go over what you can do to avoid it happening to you.
First, you want to extract as much data from your PPC campaign as you can. Run a keyword report to uncover any of the overlaps already discussed. In Google Ads, you can do this by viewing the search terms report. Here, you can review your keywords closely and find out which keywords are driving your ad traffic.
Try targeting your ads only to exact-match keywords/same keywords. Cross-include any exact matches as negative keywords in unrelated ad groups first. And if exact-match keywords generate the traffic you want, leave out broad-match keywords altogether. In other words, make sure traffic generated by broad-match keywords is not already being served by exact-match keywords. Otherwise, you’re paying for two ads to do the job of one. The same goes for Dynamic Search Ads (DSA). Add targeted keywords as negatives in DSA campaigns and block any keywords that overlap.
As for PPC-SEO overlap, decide whether you want to rely on organic traffic or not. Experiment with switching off individual keywords. Wait and see how much organic traffic you get for the keyword and compare it to when you had paid traffic. Also check if competitors are targeting your keywords to gain insight on the level of competition in organic traffic, CTR, keywords, search volume, and so forth. This way, you’ll know what you’re up against if you decide to eliminate PPC-SEO overlap by dropping ad spend.
Examine how conversions change week to week and identify trends so you can adjust accordingly. PPC advertising is a matter of trial and error. The faster you learn what works best, the better.
After you’ve diagnosed keyword overlaps, do all that you can to avoid them in the future. Don’t target plurals for keywords and always check keyword spellings. Google will match close variants of keywords, so a plural or a misspelled keyword could easily lead to keyword overlaps. If you have a lot of keywords, try using a tool to identify close variants faster.
Avoid overlaps in geographic targeting by excluding cities from country targets if running ads in both. Check target radiuses as well to ensure there is no overlap. The last thing you want to do is pay twice for the same target area.
Avoid splitting PPC traffic across multiple web pages/multiple pages by maintaining a one-stop authoritative web page that links to other web pages that fall under the same keyword. Try using 301 redirects to link pages of lesser importance to a single definitive version & avoid wrong page also keyword stuffing.
Finally, avoid keyword overlap by concentrating your ad spend on one keyword instead of many. That way, you not only don’t spread your ads too thin but you ensure that they don’t work against each other.
With brands trying to dominate the SERPs, the risk of keyword cannibalization occurs has only increased. So it’s more important than ever to keep a close eye on your PPC campaigns. If you don’t, you could be wasting valuable ad spend and not even realize it. Fixing keyword cannibalization early on will not only lower CPC costs but increase your conversions and ROI.
If you need help auditing or managing your PPC strategy or fix keyword cannibalization, ppc.co can help. Our skilled experts will quickly identify where to optimize and make improvements, so you can start getting the most out of your PPC campaigns. Contact us today to get started managing your PPC campaigns.
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Pay-per-click (PPC) remains one of the fastest paths to pipeline, but the economics vary widely by industry and are shifting as AI reshapes the SERP. CPCs are up versus prior years, conversion rates have improved in many categories, and lead quality is increasingly a function of how well advertisers feed first-party data into bidding models.
The table below summarizes 2025 search-PPC benchmarks by sector—CPC, conversion rate (CVR), and cost per lead (CPL)—so you can compare what “good” looks like in your niche and calibrate ROI assumptions.
Use these numbers as directional guardrails, then layer in your own close rates and LTV to get to the only metric that matters: profitable growth.
| Sector | CPC (2025) | CVR (2025) | CPL (2025) | Notes |
|---|---|---|---|---|
| Attorneys & Legal | $8.58 | 5.09% | $131.63 | High LTV offsets cost; intake speed drives ROI. |
| Home Services | $7.85 | 7.33% | $90.92 | Strong local intent; geotargeting and call flows matter. |
| Healthcare (Physicians & Surgeons) | $5.00 | 11.62% | $56.83 | Wide variation by specialty; appointment UX boosts CVR. |
| Real Estate (Agents/Brokerages) | $2.53 | 3.28% | ~$100.48 | Lower CVR keeps CPL high; lean on LSAs/retargeting. |
| B2B / Business Services | $5.58 | 5.14% | $103.54 | Longer funnels—optimize to qualified pipeline value. |
| Restaurants & Food | $2.05 | 7.09% | $30.27 | Efficient lead costs; fast payback with online ordering. |
| Automotive – Repair/Service | $3.90 | 14.67% | $28.50 | Top-tier CVR; excellent for local lead generation. |
In short, AI is changing the way PPC campaign management is occurring, and it's happening FAST.
ROI ≈ (Close-Rate × Avg Customer LTV ÷ CPL) − 1
Example (legal): if close-rate 12% and LTV $6,000 on CPL $132 → ROI ≈ (0.12×6000 / 132) −1 ≈ 4.45x (345% net). Improve any one input (faster intake bumps close-rate; better routing lowers CPL) and ROI jumps. Benchmarks for CPL/CVR above provide solid starting points. LocaliQ
PPC will keep paying when two things are true:
(1) you can convert and qualify leads quickly, and
(2) your bidding models are trained on the outcomes that actually make you money.
As AI compresses differences in targeting, the edge shifts to first-party data, creative velocity, and value-based bidding.
Treat the benchmarks above as starting points, then rebuild your ROI math from the ground up: ROI ≈ (Close Rate × LTV ÷ CPL).
Contact us today for your customized PPC audit to see how we can improve your search engine marketing ad spend.
When you’re running pay-per-click (PPC) ads, it’s easy to assume clicks mean genuine interest, but most car shoppers are just kicking tires online. Seeing your inventory once doesn’t mean they’re ready to buy anytime soon or even at all. If you want to reach the portion of clicks that come from serious buyers, you need to use retargeting.
The reality is that even prospects who intend to buy a car will bounce before contacting you or visiting your lot in person. And if you don’t have a way to keep them aware of your business, when they’re ready to buy, they’ll buy from a competitor. Running retargeted ads will keep your dealership in their awareness even after they bounce.
According to a 2022 Cox Automotive Car Buyer Journey Study, the average person spends more than 14 hours searching for a new car, which includes visiting around 5 websites before making a purchase decision. The sites they visit include automakers, dealers, third-party sites, and pre-owned car lots with online inventory. Your prospects aren’t going to buy right away, so to get the sale you need to reel them back in. If you’re not using retargeting – also called remarketing – in your PPC campaign, you’re missing out on hot leads.
Buying a car isn’t a small decision. People compare makes, models, and deals and look for dealerships with great reputations. Getting a single click from a potential car buyer isn’t enough to make the sale. And when they bounce, there’s no guarantee they’ll remember you exist. You’re paying for all those initial clicks, and if potential leads never come back you’ve wasted your ad spend. When you use retargeting, you’ll have another chance to turn their curiosity into a conversation, and that’s why remarketing is an essential component in every PPC ad campaign.
PPC ad retargeting for car dealerships shows your ads to people who have already clicked on an ad or visited your website. When implemented strategically, it keeps your dealership visible across multiple platforms and follows those people across the web. For example, when you run retargeted ads on the Google Display Network, your display ads will show up on the blogs, news sites, and apps your prospects frequent.
You can also run retargeting campaigns on social media sites like Facebook and Instagram. As long as your prospects scroll through their daily feed, your ads will show up for them if they’ve already interacted with you. YouTube also offers retargeting options with video ads that play right before the content. In fact, don’t underestimate the power of YouTube video advertising. According to data from Wyzowl, video ads convince 84% of people to buy a product or service.
Not everyone searching for a new car will respond to the same bland, boilerplate message. For example, someone browsing luxury SUVs isn’t going to click on an ad that says, “Low APR on all models!” That’s where remarketing shines. It lets you tailor your message to what each user actually wants, which increases response rates.
With retargeting, you can segment your audience based on their interests and behavior. For example, someone comparing financing terms won’t be swayed by flashy sports car imagery. With retargeting, you can show truck shoppers truck ads and sports car shoppers sports car ads. It sounds simple, but it’s one of the most powerful marketing methods of all time. People are far more responsive to messages that feel personal. You may have caught their attention with a general ad at first, but once they start browsing those SUVs on your website, you can retarget them with SUV ads.
When you use retargeting, you can provide different calls to action (CTAs) to users based on how they’ve engaged with your web pages. A visitor who spent a lot of time on your truck inventory pages can be served ads for your latest truck deals. Someone who checked out your lease specials can be hit with ads that talk about financing offers. It’s deceptively simple and brutally effective. Relevance is everything. When your ads reflect what the prospect was already thinking about, it feels personal and resonates.
A next-level tactic is using engagement depth to determine how strong your call to action should be. For instance:
· Multi-page viewers and long dwell times. These are warm leads and can be retargeted with stronger CTAs like “Book a test drive” and “Get a quote today.” They’re close to converting and just need a little push.
· Single-page bouncers. These are people who just peeked at your site. They can be re-engaged with lighter touchpoints like a general promotion or model comparison guide to reel them back in.
· Abandoned lead forms. If someone started filling out a form but didn’t finish, retarget them with a reminder and a stronger offer to sweeten the deal (e.g., “Complete your form for $500 off!”).
This level of nuance turns retargeting into a conversion machine and allows you to show the customer exactly what they want to see.
People don’t buy cars from whatever dealer they find first. That’s too risky. They buy from dealerships they trust and that feel familiar. You can build that sense of familiarity and trust through retargeting. For example:
· Consistent branding across ads. Using consistent branding, design, and messaging throughout your ads reinforces your dealership’s identity.
· Frequency builds familiarity. People need to see a brand between 5-7 times before they’ll remember it. Retargeting puts your dealership in front of people over and over again. Even if they don’t click right away, it’s helping to establish your credibility.
· Social proof works. When you use social proof like customer testimonials or awards in your ads it builds trust with your prospects.
Trust is earned over time, and retargeting will help you get it.
If you’re not using retargeting, your competitors definitely are. Car dealerships operate in one of the most brutally competitive markets out there, with national chains and franchise giants dominating search results and flooding ad channels with endless budgets. If you’re not showing up again and again, your competitors will, and they’ll scoop up all your leads.
The good news is you don’t need a massive marketing budget to get results. Retargeting allows smaller, local dealerships to play smart rather than trying to play big. When you focus on local PPC with hyper-targeted remarketing, you can reach a smaller, more qualified audience – people who are actually in your area, browsing your inventory, and likely to buy soon.
And unlike those cookie-cutter campaigns from national dealers, you can make your messaging feel personal and specific to your local community. That’s an edge big budgets don’t have.
Every visitor who leaves your website without converting is a potential sale but not necessarily lost. With smart retargeting, you can bring them back into your funnel and stay top-of-mind while your competitors waste money shouting into the void. Persistence wins the sale and retargeting is how you stay on the map.
To be blunt, search ads can get expensive fast, especially when clicks can cost a couple dollars per click. Pouring money into cold traffic is gambling on people who may not be ready to engage. Retargeting changes everything.
Display retargeting clicks typically cost a fraction of what you’d pay for search ads using competitive keywords. You’re no longer paying top dollar to get someone’s attention from scratch – you’re nudging people who already know who you are, and those people are more likely to respond. This makes retargeting one of the most cost-effective ways to use your advertising budget.
· Lower CPC, higher intent. Retargeting costs less per click, but you’re targeting people who already visited your site and showed interest.
· Better conversion rates. Familiarity breeds trust. Retargeted visitors are statistically more likely to convert than new users who just clicked an ad out of curiosity.
· Higher ROI. Since retargeting reaches warm leads, the cost of acquiring a lead is usually lower, which means your overall cost per lead is lower and you get better ROI.
If you’re skipping remarketing because you think it’s just something “extra” that doesn’t make a difference, you’re not saving money – you’re losing easy wins. Instead of perpetually chasing new, cold traffic, invest in converting the traffic you’re already getting. That’s exactly what remarketing does.
Generic ads are fine for first impressions, but once someone has browsed your inventory it’s time to get specific with dynamic retargeting. Here’s how it works:
When a prospect views a specific vehicle on your site, you can use retargeting ads to show them the exact vehicles they viewed and others like it down to the year, color, trim, and mileage. For example, if they looked at a black 2005 BMW 535i, that’s exactly what they’ll see in the ad – the same photos, same specs, all across sites like YouTube, Facebook, news platforms, and more. This reminds your prospects of exactly what they want.
Dynamic retargeting works by integrating your live inventory feed with your ad platform, like Google Ads or Meta. This means the vehicles displayed in your ads will always be up to date and won’t feature cars you sold last week.
Beyond personalization, dynamic ads are an incredible tool for creating a sense of urgency:
· Leverage scarcity. With these ads, you can leverage the power of scarcity by stating that your inventory won’t last. Using messages like “Only 1 left” or “Recently reduced” signals that the opportunity won’t last.
· Show what’s popular. If a particular model is getting a lot of views, let your prosects know. People don’t want to miss out on a good deal.
· Trigger action with FOMO. Fear of missing out is real, and when people see the car they want again – with a reminder that it might sell soon – they’re more likely to come in for a test drive.
By using retargeted ads, you can increase conversion rates by up to 200% compared to standard display ads. These ads feel more like a helpful reminder than an outright advertisement.
If you’ve never run paid ads before, it’s easy to assume your only options are basic keyword targeting and generic follow-up ads. But today’s ad platforms give you a buffet of hyper-specific targeting capabilities to fine-tune exactly who sees your ads, where, when, and how.
One of the most effective PPC retargeting tactics for car dealerships is location-based targeting. With radius targeting, you can serve ads to people within a specified distance from your dealership, like within 10-15 miles. These will be prospects who are not only likely to visit your site but could realistically walk into your showroom today. Don’t waste ad spend on clicks from people three states away.
Then there are device-specific campaigns. If your analytics show that 75% or your traffic comes from mobile (this is common), you can launch a mobile-only retargeting campaign with click-to-call buttons, mobile-optimized landing pages, and a map and directions built right into your ads. This will improve the user experience and increase conversion rates.
Timing also matters. When you schedule your ads you can control when they appear. Run them during lunch breaks, in the evenings, or on weekends when people have more time to browse car listings and are more likely to make big purchase decisions.
Other strategic targeting elements include:
· Demographic targeting. You can tailor your messages based on age, income level, and household status. A 25-year-old college grad and a 45-year-old parent are not shopping for the same reasons even though they might buy the same car.
· Behavioral triggers. You can create audiences for your retargeted ads based on repeat visits, clicks, video views, or interaction with a specific feature like a trade-in calculator.
· Lookalike audiences. Build new audiences that resemble your best customers. Platforms like Meta and Google are really good at identifying similar users based on their behavior online.
The bottom line is that retargeting doesn’t have to be broad. With the right strategy, it becomes a smart, cost-effective system for reaching the right prospects at the right time.
Have a sale, lease offer, or year-end clearance? Retargeting can amplify the urgency to act now. By offering short-term discounts and financing deals, you can tap into the urgency people feel when presented with time-sensitive offers. Emphasize the end date using a countdown timer or final deadline to create FOMO (fear of missing out).
With this type of retargeting, you can align your ads with your email messaging to increase conversions even more. For example, if you sent out a promotion to your email list, they’re likely to see your retargeted ads and be reminded of the deal you’re offering.
Retargeting is the PPC secret weapon most car dealerships don’t take advantage of. Using this strategy can make the difference between a one-time curious visitor and a buyer ready to schedule a test drive. If you’re spending money on clicks without retargeting your visitors, you’re wasting your ad spend.
At PPC.co, we specialize in high-performance white label PPC campaigns that include smart retargeting from day one. Whether you’re launching your first campaign or looking to tighten up your existing ad strategy, we can help you capture more leads, drive more traffic, and move cars off your lot. Let’s turn those clicks into closed deals – contact us now to get started.
