If your Google Ads cost per click (CPC) seems to be on a steady climb, it means you're paying more for every visitor, which can cut into your sales and conversions. You don't have to just accept these rising costs. There are four practical steps you can take in your Google Ads account to help bring those CPCs back down.

Key Takeaways

  • Focus on ad relevance and landing page experience for better Quality Scores, which can put downward pressure on CPCs.
  • Test broad match keywords carefully; they often offer lower CPCs but require vigilance on conversion metrics like Cost Per Conversion.
  • Target problem- or solution-based keywords higher in the funnel to capture cheaper traffic, managing these in separate campaigns.
  • Expand beyond Search and Performance Max to other campaign types like YouTube or Discovery to find new audiences and potentially lower overall account CPCs.

Improve Your Quality Scores

One of the first places to look is your Quality Score. This score reflects your keyword's expected CTR, ad relevance, and landing page experience. While a higher Quality Score won't automatically guarantee lower CPCs, it does increase your Ad Rank, putting downward pressure on your costs.

It's important to remember Google Ads is a live auction. Even with better Quality Scores than last year, you might still pay more if new competitors enter the market or more businesses use smart bidding strategies. Aim for a Quality Score above five or six; the biggest CPC improvements happen when you move from a low score (like two or three) into this mid-range. Beyond that, the impact on CPC often lessens.

Make sure your ad copy directly relates to the user's initial search, and your landing page is relevant to both your ad copy and the search query. A slow-loading website or a poor user experience on your landing page can significantly drive up your CPCs. You can find more details on optimizing these elements in Google's official Quality Score guide.

Test Broad Match Keywords

If you're only using exact match keywords, you might be missing out on cheaper clicks. Adding some broad match keywords to your ad groups can open up new opportunities. However, this strategy isn't for every business, and it requires careful monitoring.

When you test broad match, don't just look at the CPC. You need to keep a close eye on your conversion metrics. For example, a business offering licensing services saw exact match CPCs over $11, while broad match keywords delivered clicks for about $6.50. While the exact match had a higher conversion rate (23% vs. 11-12%), the broad match's Cost Per Conversion remained profitable at $52-55 (under their $70 target) and provided crucial volume the exact match couldn't.

The goal is to find a balance: getting enough reach for your business while ensuring your conversions remain profitable. Lower CPCs are good, but only if the traffic converts.

Target Problem or Solution-Based Keywords

Consider targeting keywords that are higher up the sales funnel. Instead of only bidding on high-intent terms for your product or service, look for searches where users are researching a problem or seeking solutions that your offerings address. This approach can often yield cheaper traffic.

The trade-off is that these users are typically earlier in their buying cycle, so conversions might take longer. It's often best to run these keywords in a separate campaign. This lets you control the budget and bidding more effectively for this type of traffic. For instance, an acne treatment cream business saw CPCs of $7.19 for their product keywords. But by targeting terms like "best skincare routine for oily skin," their CPC dropped to $3.00—a significant reduction by engaging users earlier in their journey.

Diversify Campaign Types

Most businesses start with Search, Shopping, and perhaps Performance Max campaigns. But if you hit what some call "CPC resistance"—where increasing your budget leads to disproportionately higher CPCs—it's time to expand.

Adding different campaign types can help. Consider YouTube campaigns (through Demand Gen or standard Video campaigns) or Discovery ads (also via Demand Gen). These target users on different networks, often bringing in cheaper traffic. The caution here is that results from these newer campaigns can take longer to materialize.

Start small, perhaps dedicating 5-10% of your current Search budget to these new types. When reviewing performance, look at your total account performance. A new video campaign might break even or show a loss individually, but it could be contributing to overall lower CPCs and improved conversions across your entire account. Google's Demand Gen campaigns offer a way to reach users across YouTube, Gmail, and Discover feeds.

Bottom Line

Managing Google Ads CPCs effectively means looking beyond a single metric. By focusing on Quality Score fundamentals, strategically testing broad match, capturing top-of-funnel interest, and diversifying your campaign mix, you can gain more control over your ad spend and drive more profitable outcomes.