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How to Get a Lower Cost Per Click for Your Google Ads

Samuel Edwards
|
April 3, 2023

There are few variables as important to your PPC campaign as your cost per click (CPC).

It represents what you’ll pay for each user who clicks on your targeted ads – which means a difference of even a few cents can add up to thousands of dollars in a large-scale campaign.

Unfortunately, you can’t directly manipulate this variable the way you can, say, the number of ads you run or the total budget of your campaign. Your CPC is determined by Google (or the advertiser of your choice, though we’ll be mostly focusing on Google in this guide).

But you can influence your CPC with the right strategies.

And if you’re persistent, you can bring it down to a very reasonable number.

So how do you do it?

Why You Should Lower Your Cost Per Click in PPC Advertising

Cost Per Click

Why should you care about lowering your cost per click in PPC?

The obvious benefit is that it can save you money.

Think about it; if you can maintain a consistent conversion rate, with a consistent conversion value, a lower CPC will lead directly to a higher ROI for your strategy. It’s a lower cost basis, with all other factors being (mostly) equal.

Lower CPCs can also help you target better keywords more aggressively, make the most of a thin budget, and compete with rivals that would otherwise outspend you easily.

Two Approaches to Lower Your Cost Per Click in PPC

In this guide, we’ll focus on several tactics that can help you lower your CPC. These factors can be grouped into two main categories:

  1. Improving your Quality Score. In Google Ads, your Quality Score is a measure of the quality and relevance of your ads and target keywords. A high Quality Score isn’t just a flattering comment; higher Quality Scores are associated with better ad positions and – you guessed it – lower CPCs. If you can boost your Quality Score enough, your average CPC should go down.
  2. Avoiding competition. Like all other goods and services, the price of advertising fluctuates in response to changes in supply and demand. Since advertising supply is practically unlimited in the digital world, demand is the more important variable; excessive demand for a specific type of ad or a specific platform is going to push prices higher. If you can find a less competitive, lower-demand space, you can score a lower CPC.

Improve Your Quality Score

Google Ad Quality Score

We’ll start by focusing on your Quality Score; again, the higher this rating is, the lower your CPC should be.

In this section, we’ll be focusing on Quality Score in Google Ads. Keep in mind that other PPC platforms have similar advertiser ratings that may function differently.

According to Google, Quality Score is typically calculated based on three factors. Each of these three factors is rated as average, above average, or below average.

  1. Expected clickthrough rate (CTR). Based on aggregated data from historical performances, Google estimates the clickthrough rate (CTR) for each ad. In other words, if a user sees this ad, how likely are they to click on it? A higher anticipated CTR is associated with a higher Quality Score.
  2. Ad relevance. The ad relevance also matters. This is more of a qualitative measure, defining how closely aligned your ad copy is with the user’s search keywords and search intent. You need to give people what they’re looking for.
  3. Landing page experience. Quality Score also depends on the overall landing page experience. Do users spend time on your landing page? How likely are they to convert? Is your landing page content aligned with your ads and target keywords?

Above average ratings in all three areas should lead to a higher Quality Score, which in turn, should lower your CPCs.

Here are some of the best tactics you can use to boost your Quality Score reliably:

  • Use single keyword Ad Groups (SKAGS). Landing pages and text ads are keyword specific, so consider using single keyword Ad Groups (SKAGS). This will make it much easier for you to ensure that all your ads and landing pages are closely aligned with search terms and user search intent. Sure, it’s a bit more work on your end, and it might disrupt your existing grouping strategy, but if it means boosting your ad rank, it’s worth it.
  • Don’t worry about match type. Quality Score is based on historical impressions for exact searches – so there’s no need to worry about match type. This is an important variable to consider in your Google Ads campaign, but don’t waste your time experimenting with match type for the sake of pumping up that ad rank.
  • Focus on user intent. When targeting a specific keyword, it’s a good idea to include that keyword (or a close variant) in your ad to maximize its relevance. But you also need to go a step further; you need to understand why a user is searching for this term so you can give them what they want in each ad. For example, if a user searches for “sturdy bookshelf,” we can reasonably conclude they’re looking to buy a shelf that serves the specific purpose of holding lots of heavy books (or similarly heavy items). It’s not illegal to advertise similar products, like ornamental bookshelves or decorative shelves, but it’s much better to focus on the primary user intention to increase search volume and visibility on the search engine results page.
  • Split test and rotate your ads. It’s hard to tell exactly which types of ads will result in higher Quality Scores and CTRs, which is why we need to practice ongoing experimentation. The best way to do this is to split test (AB test) and rotate your ads. Split testing means circulating two different ads under similar conditions to see which one performs better; you can then ditch the loser, keep the winner, and analyze the results so you can use those insights to create better ads in the future. From there, you’ll need to continuously rotate in new ad varieties. This way, you can keep pushing your Google Ads campaign to perform better while improving your overall results at the same time.
  • Avoid ad cannibalization. High Quality Scores require strategic focus, so avoid ad cannibalization; in other words, don’t have multiple ads competing with each other for digital real estate. Each ad should be perfectly optimized for a unique niche to maximize relevance; if another, less relevant ad could also appear for a similar hypothetical search, it could compromise your results.
  • Optimize your landing pages for target keywords. It’s tempting to spend all your efforts on ad optimization, but your landing pages need love too. Make sure your landing pages are optimized for specific long tail keywords and user intents – and create new, original landing pages if necessary. If you have only one landing page for all your different ad campaigns, it’s a bad sign; you’re much better off with hyper-specifically targeted pages that match user intent and boost ad rank.
  • Pay close attention to landing page behavior (and take action). Landing page optimization is about more than just ensuring keyword relevance. It’s also about improving user behavior metrics – which can boost your conversion rate at the same time. If your landing page has a high bounce rate or a disappointing dwell time, analyze the page to try and figure out why. Is the content misaligned with user search intent? Is the content lackluster or missing something? Are there insufficient visuals or trust signals? You can split test and rotate your landing pages just like you do with ads to improve your position on the search engine results page.
  • Carefully lower your max bids. Lowering your maximum bids can set you up for a lower cost per click as well, but you need to exercise caution. If you lower your maximum bids too much or too quickly, you could end up with a lower position and worse overall result. Your best bet is to lower your bidding strategy slowly and incrementally so you can find the sweet spot for cost and performance.
  • Pause ads with high cost to conversion ratios. Sort your Google AdWords keywords by cost, then filter by conversions so you can compare the cost and conversion of each advertising opportunity. Find the ads with the highest cost to conversion ratios and consider pausing them. You can spend more money and energy on ads with a lower relative cost basis. Optimize this enough, and you’ll end up with highly cost-efficient ads across your campaigns.
  • Keep introducing new keywords. Never stop experimenting. It’s tempting to stick with the keywords you understand best, but you’ll see better results if you keep introducing new keywords and tinkering with new strategies. You’ll better understand your demographics, flesh out your ad portfolio, and iteratively push your Quality Score higher.
  • Look into other variables. There are many secondary and tertiary variables that can influence user behavior in response to your Google Ads campaign, so take them into consideration. Users may behave differently based on the device they’re using, their location, the ad schedule, the time of day in which they see the ad, and other factors. Google asserts that these variables don’t directly influence your Quality Score, but they may have an indirect impact; even if this impact is negligible, these variables are worth considering to improve the performance of your ad campaigns and landing pages.
  • Check your Quality Score regularly. In your Google Ads account, head to the Keywords section of the left menu. In the upper right corner, click the columns icon, then open the Quality Score section under “Modify columns for keywords.” Here, you can find all your ad rank data. Be sure to check your scores regularly so you can analyze your momentum, determine whether your tactics are working, and brainstorm future strategic decisions.

Avoid the Competition

Avoid the Competition

Let’s say you’ve maxed out your Quality Score and you’re still not satisfied with your CPC.

What can you do?

A secondary option is to avoid high-demand niches and limit your competition.

Apart from strategic business decisions (like a full pivot), these are your best tactics here:

  • Know your top competitors. Your first job is to know who your top competitors are and analyze the threat they pose. Who are the top rivals in your industry, how aggressively are they advertising, and do they seem to have an adversarial or aggressive approach? Are there any areas of weakness that you could exploit? Are there platforms they aren’t using or keywords they aren’t targeting at all?
  • Use multiple platforms and networks. Google is (understandably) the top dog in the PPC advertising world, but Bing is better in many cases. One of the critical advantages that Bing has is a lower average CPC. The reach may not be as broad, but the cost basis is attractive, and if conversions are your bottom line, tapping into the power of Bing is a no brainer. Of course, Bing isn’t the only alternative platform to Google; you can also consider any number of social media platforms and other ad networks relevant to your brand.
  • Use both high-funnel and low-funnel strategies. Sometimes, you can lower your average CPC and see better results by shifting up or down in the sales funnel. If all your competitors are clamoring for attractive, immediately valuable low-funnel users, consider targeting neglected high-funnel users. In other words, target customers who are still in the earliest phases of the buying decision making process. Just keep in mind that users in different stages of the sales funnel are going to require different ad and landing page optimizations.
  • Target unique demographics. Finally, consider targeting unique demographics. You may be able to avoid or minimize your competition by, say, targeting users in a different geographic location, users in different age groups, or users with different behavioral patterns. To be truly effective here, you’ll likely need to experiment – and there’s no guarantee your “alternative” demographics will be as valuable as your primary targets.

Do you want to lower your overall CPC?

Do you find yourself hoping for a more cost effective, higher-ROI PPC campaign?

Are you unsure where to start?

PPC.co has the experts who can help – so contact us for a free consultation today!

Author
Recent Posts

Samuel Edwards

Chief Marketing Officer

Throughout his extensive 10+ year journey as a digital marketer, Sam has left an indelible mark on both small businesses and Fortune 500 enterprises alike. His portfolio boasts collaborations with esteemed entities such as NASDAQ OMX, eBay, Duncan Hines, Drew Barrymore, Price Benowitz LLP, a prominent law firm based in Washington, DC, and the esteemed human rights organization Amnesty International. In his role as a technical SEO and digital marketing strategist, Sam takes the helm of all paid and organic operations teams, steering client SEO services, link building initiatives, and white label digital marketing partnerships to unparalleled success. An esteemed thought leader in the industry, Sam is a recurring speaker at the esteemed Search Marketing Expo conference series and has graced the TEDx stage with his insights. Today, he channels his expertise into direct collaboration with high-end clients spanning diverse verticals, where he meticulously crafts strategies to optimize on and off-site SEO ROI through the seamless integration of content marketing and link building.

Latest posts by

Samuel Edwards

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Author

Samuel Edwards

Chief Marketing Officer

Throughout his extensive 10+ year journey as a digital marketer, Sam has left an indelible mark on both small businesses and Fortune 500 enterprises alike. His portfolio boasts collaborations with esteemed entities such as NASDAQ OMX, eBay, Duncan Hines, Drew Barrymore, Price Benowitz LLP, a prominent law firm based in Washington, DC, and the esteemed human rights organization Amnesty International. In his role as a technical SEO and digital marketing strategist, Sam takes the helm of all paid and organic operations teams, steering client SEO services, link building initiatives, and white label digital marketing partnerships to unparalleled success. An esteemed thought leader in the industry, Sam is a recurring speaker at the esteemed Search Marketing Expo conference series and has graced the TEDx stage with his insights. Today, he channels his expertise into direct collaboration with high-end clients spanning diverse verticals, where he meticulously crafts strategies to optimize on and off-site SEO ROI through the seamless integration of content marketing and link building.

Related posts

Samuel Edwards
|
May 30, 2025
PPC Case Study: Tampa, Florida Apartment Complex

When this apartment complex client partnered with PPC.co, their goal was clear: generate more qualified leads through Google Ads. In just 60 days—from January to March 2025—we transformed their paid acquisition performance. Total conversions more than tripled, jumping from 10 to 32, while the overall conversion rate soared by over 300%. At the same time, we drove down the cost per conversion by 44%, delivering significantly more leads at a much lower cost. 

By strategically combining Performance Max and high-intent Search campaigns, we not only increased lead volume but improved overall efficiency and ROI. This rapid and measurable improvement underscores the value of data-driven optimization and expert campaign management.

January 2025

March 2025

‍

Campaign Analysis Summary

January 2025

  • Total Ad Spend: $498.63

  • Total Conversions: 10

  • Cost per Conversion: $49.86

  • Overall Conversion Rate: 1.12%

  • Campaigns Active:

    • Performance Max (PMax):

      • Conversions: 10

      • Conversion Rate: 1.12%

      • Cost per Conversion: $49.86

    • Search Campaign: No conversions or spend.

March 2025

  • Total Ad Spend: $898.54

  • Total Conversions: 32

  • Cost per Conversion: $28.08

  • Overall Conversion Rate: 4.64%

  • Campaigns Active:


    • Performance Max (PMax):


      • Conversions: 19

      • Conversion Rate: 3.74%

      • Cost per Conversion: $27.39

    • Search Campaign:


      • Conversions: 13

      • Conversion Rate: 7.14%

      • Cost per Conversion: $29.08

Strategic PPC Campaign Insights

  • Performance Max Improvements:

    • Conversions almost doubled (10 → 19) with just a 4.4% increase in spend ($498.63 → $520.45).

    • Cost per conversion was nearly cut in half ($49.86 → $27.39), showing better algorithmic targeting or improved creatives/landing page experience.

    • Conversion rate rose from 1.12% to 3.74%, indicating better audience alignment.

  • Search Campaign Activation:

    • Was inactive in January.

    • Delivered strong performance in March with a 7.14% conversion rate and 13 conversions at a very competitive $29.08 cost per conversion.

    • High interaction rate (7.65%) shows strong ad engagement and search intent alignment.

What’s the path going forward? 

  1. Continue Campaign Diversification:

    • The dual strategy of running both PMax and Search campaigns is proving effective. Continue scaling with both to diversify reach and conversion sources.

  2. Increase Budget Strategically:

    • Given the efficiency improvements (43.7% drop in cost per conversion), consider increasing the budget further to capitalize on momentum—particularly for the high-performing Search campaign.

  3. Refine PMax Targeting & Creative:

    • The Performance Max campaign is performing well but has room to improve conversion rate to match the Search campaign. A/B test creatives, refine audience signals, and check landing page relevance.

  4. Track Lead Quality:

    • Ensure that higher conversion volume aligns with high-quality leads or downstream metrics like closed deals or ROI.

‍

‍

The client was thrilled with the performance. As they put it: 

‍

We’re super excited about the results! Can’t wait to see what’s to come!”

‍

Conclusion

This case study is a testament to what can happen when a well-structured campaign meets expert strategy and continuous optimization. Whether you're launching a new property or looking to boost occupancy in a competitive market, PPC.co delivers real results—fast.

Ready to grow your leads and lower your cost per conversion?
Contact us today to schedule a free audit and discover how we can help you achieve similar results.

Click on the following link if you would like to see more PPC case studies! 

‍

Timothy Carter
|
May 29, 2025
The E-Commerce & Retail Guide to Running Profitable Paid Ads

If you’re running an e-commerce or retail business, you already know that visibility is everything. The best product in the world won’t sell if no one sees it. That’s where paid ads for ecommerce comes in. 

Done right, they drive traffic, conversions, and repeat customers. 

Done wrong, they drain your budget and leave you wondering what went wrong.

Whether you’re spending $500 a month or $50,000, your goal is the same: profitability. Not just clicks, and certainly not just impressions. You want to turn ad dollars into real, predictable revenue.

So how do top-performing e-commerce and retail brands make their paid ads work? 

What are they doing that you’re not? 

This guide breaks it down step-by-step, so you can start running profitable ads with confidence.

Understand Your Business Goals Before You Spend a Dime

Before you launch a single campaign, you need clarity on your audience and goals. Are you trying to boost first-time sales? Increase average order value? Each objective requires a different strategy and metrics for success.

  • If your goal is new customer acquisition, your campaigns might be optimized for reach, clicks, or conversions. 
  • If your goal is profitability, you’ll focus more on return on ad spend (ROAS), customer lifetime value (CLTV), and cost per acquisition (CPA).

Don’t fall into the trap of launching ads just to “see what happens.” Paid media works best when it’s part of a bigger strategy. So before you log in to Google Ads or Meta Ads Manager, get specific about what success looks like.

Know Your Numbers

If you want to run profitable paid ads, knowing your numbers is the foundation of your entire strategy. Without a clear understanding of your margins, break-even points, and how much you can afford to spend to acquire a customer, you’re essentially gambling with your ad budget. 

And in e-commerce, that can get expensive fast.

Let’s start with the most critical numbers you need to know:

  • Cost of Goods Sold (COGS). This is what it costs you to produce or source the product you’re selling, including manufacturing, packaging, and shipping to your warehouse (or dropshipping fees). If you’re selling a T-shirt for $30 but it costs you $10 to manufacture and another $5 to ship, your total COGS is $15.
  • Average Order Value (AOV). AOV is the average dollar amount a customer spends when they place an order on your site. If your total revenue for a given period is $10,000 and you had 200 orders, your AOV is $50. This number helps you understand how much revenue you can expect per customer interaction – and it’s key to setting realistic ad spend limits.
  • Gross Profit Margin. This is the percentage of each sale that’s actual profit before marketing and operational costs. Using the example above, if your product sells for $30 and costs $15 to produce, your gross profit is $15, or 50 percent. If your AOV is $50 and your average product costs $25, you’re working with a 50 percent margin overall. Higher margins give you more breathing room with your ad spend.

Your break-even ROAS tells you the minimum return you need on your ad spend to not lose money. It’s calculated by dividing 1 by your gross profit margin. 

So if your margin is 50 percent, your break-even ROAS is 2.0. That means for every $1 you spend on ads, you need to make $2 in sales just to break even.

For example, let’s say you’re running Facebook Ads and spending $1,000 on a campaign. If your break-even ROAS is 2.0, you need to generate at least $2,000 in revenue to avoid losing money. Anything above that is profit. Anything below that eats into your cash.

Once you know your numbers, you can reverse-engineer your ad strategy instead of throwing money into the void and hoping for results. For instance, if your AOV is low (say $25), you might struggle to profit from ads unless you have a very low COGS or high conversion rates. In that case, you might want to:

  • Bundle products to increase AOV
  • Offer free shipping thresholds (e.g., “Free shipping over $50”)
  • Upsell or cross-sell related products during checkout

On the other hand, if your AOV is $150 and your margins are strong, you have more room to compete in ad auctions, bid more aggressively, and test multiple audiences and creatives without instantly wiping out your profit.

A lot of beginner advertisers focus entirely on immediate return from ads. That’s understandable – but short-sighted. If you’re breaking even or slightly losing on the first sale, that might still be a smart move if you’re building long-term customer relationships.

That’s where Customer Lifetime Value (LTV) comes in. If you know that your average customer places three orders a year, each worth $60, then their LTV is $180. If you spend $40 to acquire that customer with your first ad, but earn $140 more over the next 12 months, that ad was extremely profitable in the long run.

Top e-commerce brands build their paid strategies around LTV-to-CAC ratio – how much they earn over time compared to what they paid to acquire the customer. 

A healthy ratio is usually 3:1 or higher. So if you’re spending $50 to acquire a customer, you want to earn at least $150 from that customer over time.

Once you understand your numbers, you can plan your ad spend with precision. You’ll know exactly:

  • How much you can pay to acquire a customer
  • How much you need to make per order to be profitable
  • What kind of ROAS you should target in your campaigns
  • When it’s time to scale or pull back

Let’s say you want to make $5,000 in profit this month, and your product has a 50 percent gross margin. That means you need $10,000 in sales. If your target ROAS is 2.5, you can spend up to $4,000 in ad spend to hit that goal. With those numbers in hand, you now have a roadmap for campaign budgeting, not just a shot in the dark.

Choose the Right Platforms for Your Audience

Every ad platform has strengths. But if you try to use them all at once, you’ll burn through your budget without learning much. Instead, pick one or two that align best with your business model and customer behavior.

If you’re selling visually appealing products like apparel, skincare, or home goods, platforms like Instagram and TikTok can deliver strong returns – especially with the right creative. If you’re focused on high-intent buyers, Google Search and Shopping Ads are goldmines. And if you’re targeting professionals or B2B retail buyers, LinkedIn may offer surprising results.

Test channels strategically. Start with the one that matches where your customers spend their time and scale from there. The best platform for you is the one where your ideal customers are already shopping, scrolling, or searching.

Nail Your Targeting

One of the biggest mistakes retailers make is casting too wide a net. You don’t want everyone to see your ad – you want the right people to see it.

On Google, this means targeting high-intent keywords that signal buying behavior. Focus on terms like “buy,” “best,” “free shipping,” or product-specific searches. On Facebook, Instagram, or TikTok, you’ll want to dial in your custom audiences using demographic data, lookalikes, interests, and behavior.

Don’t forget retargeting. Most people won’t buy the first time they visit your site, but retargeting brings them back when they’re ready. Set up ads that follow people who viewed a product, added to cart, or engaged with your brand but didn’t check out.

The more relevant your targeting, the more efficient your spend and the higher your return.

Invest in Scroll-Stopping Creative

Creative is the make-or-break factor in most e-commerce ad campaigns. You can have perfect targeting and the right product, but if your ad doesn’t grab attention in the first two seconds, it won’t convert.

Your creative needs to do three things quickly:

  1. Stop the scroll
  2. Spark interest
  3. Show value

Use high-quality product photos or videos. Show your product in action. Highlight a clear benefit or solve a specific problem. Incorporate customer reviews or user-generated content to build trust.

For paid social, test multiple creatives at once – video vs. image, UGC vs. branded, short-form vs. long-form – and let performance data guide your iterations. On search platforms like Google, focus on copy that’s compelling and packed with relevant keywords. Test different headlines and descriptions to see what gets the best click-through rate.

Use Landing Pages That Convert

Sending paid traffic to your homepage is a rookie mistake. You want every click to land on a page that’s designed to convert. That means fast load times, mobile optimization, and a clear call-to-action.

If you’re promoting a specific product, send users to that product page and not your full catalog. If you’re offering a bundle or a seasonal deal, create a dedicated landing page with copy, visuals, and layout tailored to that offer.

Remove distractions. Reduce friction. Make it stupid-easy for people to buy. The less effort it takes, the more sales you’ll see. And don’t forget to A/B test. Sometimes a simple tweak to your headline or CTA can double your conversion rate overnight.

Monitor Performance

Once your ads are live, your job isn’t done. In fact, this is where it really begins. You need to monitor performance regularly, looking at more than just the surface-level metrics.

Click-through rate (CTR) tells you how well your ad is capturing attention. Conversion rate shows how well your landing page is sealing the deal. ROAS tells you how profitable your campaign is. And CPA helps you compare efficiency across different products or audiences.

Watch for early indicators of success – or failure. 

  • If your CTR is low, your creative probably needs work. 
  • If people click but don’t buy, your landing page or offer may be off. 
  • If your ROAS is negative, it’s time to adjust your targeting, bidding, or pricing.

Treat your campaigns like living systems. Tweak, test, and improve them continuously.

Scale What’s Working, Kill What’s Not

Once you find a winning combination – an ad, offer, and audience that works – it’s time to scale. Increase your budget gradually while keeping an eye on performance. Scaling too fast can tank your results, so go step by step.

Duplicate high-performing campaigns to test new audiences or creatives. Experiment with upsells, bundles, or time-limited offers to increase AOV. Layer in email or SMS marketing to retarget paid traffic and drive repeat sales.

And just as importantly, don’t be afraid to kill underperforming ads. If something isn’t working after a reasonable test period, cut it. Your budget should be flowing to what works – not what you hope will work.

Focus on Lifetime Value

One of the biggest mistakes in paid advertising is chasing one-off sales without thinking about the bigger picture. Winning e-commerce brands think in terms of customer lifetime value.

If your first sale breaks even, that’s fine. (As long as you have a plan to turn that customer into a repeat buyer. ) You can use post-purchase emails, loyalty programs, and retargeting ads to bring people back.

At the end of the day, when you view paid ads as the beginning of a customer relationship – not the end – you unlock real long-term profitability. And at PPC.co, that’s where we want to help you! We offer industry-leading PPC management services for ecommerce and retail brands who want to stop wasting ad spend and start generating real ROI.

Contact us today to learn more!

‍

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