If you have already decided that you want to run a Google Ads campaign to help you achieve your marketing goals, you would have great reasons to justify your decision. For one, as many as 18% of those who search for products on search engines end up clicking on a link and becoming a conversion. So, Google PPC can indeed help you make conversions but wouldn’t your gains be greater if you could reduce the costs while making those conversions?
Here, you’ll learn how to reduce Google PPC costs while increasing conversion rates.
Yes, it’s still worth it to run Google PPC Ads
Why Google PPC ads? You may ask. Google Pay-per-click (PPC) ads can be an effective way of reaching new customers using a well-controlled marketing budget. With well-tailored keywords, you can use Google Ads to reach specific users.
Even though costs for Google Ads are on the rise, many businesses still find Google Ads to be a valuable tool. For example, e-commerce businesses still invest in Google Search Ads because of the results they get from it.
Besides, Google Display Network (GDN) continues to grow and at the same time, the network is recording higher Ad spends particularly for app and video ads. What this means is that you have a higher potential to reach new audiences beyond the usual search placements.
Read the beginner’s guide to understanding lead generation and customer acquisition
Tips to reduce Google PPC costs while maximising conversion rates
There is indeed a thing called Google Ads inflation. This means the cost of Google Ads is on the rise. Year-over-year click costs have risen by as much as 14% according to recent reports. But you do not need to give up in dismay. Here are some ways you can reduce Google PPC costs while increasing conversion rates.
It begins with the right keywords
A secret to successful Google PPC campaigns is the strategic use of keywords. The keywords that you choose should have high intent and be relevant to your audience. Using highly competitive keywords can lower your quality score and even increase your costs per click (CPC). This is why you can implement steps such as using keyword research tools like Google Keyword Planner and Trends to discover the right keywords.
Long tail is better
You can think of Google Ads as having two legs when it comes to getting results: Ad costs and relevance. You can increase the relevance of your Google ads when you prioritise the use of targeted, more specific, and longer keywords. At the same time, be sure to prioritise lower competition keywords. This strategy can help you to potentially lower your costs per click (CPC).
Understand quality score and build it
The Quality score of your Google Ads is dependent on several factors that include the relevance of your ad to its landing page and how technically sound your website is. Some examples of what makes for a technically sound website include good sitemap structure, unbroken URLs, good use of metadata, and excellent site linking. Ads that have a high-quality score stand a better chance of running with a lower cost per click. In turn, this leads to a lower cost per conversion for the ad.
Write clear and compelling ads and landing pages
Your ad copy needs to be clear and concise. It also needs to align with your landing pages. You wouldn’t want a prospect to click on your ad on Nike shoes and be directed to a landing page on Adidas shoes. Remember to leverage ad extensions to increase value and user engagement.
Other things to do to ensure an optimised landing page include the following:
Enhance the content, design, and user experience to increase conversions and reduce CPA.
Just like for your ad copy, the messaging on your landing page should be clear and compelling. This is applicable for headlines and sub-headings.
Make good use of engaging, high-quality, and relevant visuals. This includes infographics, images, and videos.
Use a clear CTA and streamline your conversion processes. A user should not have to fill in so many fields or perform so many clicks in order to convert.
Optimise your landing page for mobile and other devices.
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Take advantage of Smart Bidding tools
Yes, you can target and strike the two birds of increasing ROI and reducing costs with one stone. With Google’s automated bidding tools such as Target Return on Ads Spend (ROAS) and Target Costs per Acquisition (Target CPA), it is easier for you to optimise your bids for conversion or to receive a better return on ad spend. If you want even more precise control over your bidding, you can consider using advanced third-party AI tools.
Think bigger and wider
There is the potential to benefit from lower CPCs if you expand your reach to other platforms such as Facebook Ads and Microsoft Advertising. In this way, you would not be limiting yourself to just Google Ads but you would be able to reach new audiences.
Optimise Costs Per Click (CPCs)
CPCs are fundamentally all about clicks and every click counts. You can therefore reduce costs and boost conversions by using Conversion Rate Optimization (CRO). This will improve the user experience on your website and also improve the conversion rates of your ads. This will also maximise the return on your ad spend.
Consider using AI-powered tools
You may lose out if you do not leverage the power of AI. You can put AI-powered tools to great uses such as optimising bids, automating tasks, and generating deeper customer insights.
More specifically, instead of spending time on manual bidding, you can use AI-powered bidding tools to automatically adjust and optimise bids for maximum ROI. With AI, you can analyse vast amounts of data for hidden patterns, predict user behaviour, and ultimately gain more qualified leads and conversions.
It is possible to use AI to analyse search queries and identify the precise search intent of users. Your next step after gaining insight into user search intent would be to use that insight to craft relevant ad copies to help you potentially lower CPC and increase your relevance score.
Read up on 5 incredible ways that automation is replacing customer service and chatbots
Keep tracking and optimising
In this context, “good enough” may not be “good enough.” You should be on the look-out to get the most out of your budget by continuously tracking, testing, and refining your campaigns.
Moreover, you link Google Ads and Google Analytics together so that you can get the best out of analysing the performances of both your ads and your landing pages.
Tips to reduce cost per conversion
Identify and pause low-converting keywords
It is worthwhile to regularly review your keywords to see which ones are generating conversions and which ones aren’t. Then you can consider pausing low-converting keywords. A clue to identifying such keywords is to look at their conversion rates. For example, a keyword that generates 5 conversions out of 10 clicks received may be worth keeping because it has a 50% conversion rate whereas one that generates only 1 conversion out of 2,000 clicks should likely be paused.
Optimise high-converting keywords
In this case, it makes sense to keep a winning strategy. Take a second look at those keywords that are generating good results. You can use the “search terms” tab to get a list of long-tail keywords that users use before clicking on your ad. Thereafter, you can add the keywords to your campaign to target more users at a lower cost.
Include negative keywords
Negative keywords are keywords that have no relevance to your ad. It therefore makes sense to use them to prevent your ads from targeting users who are unlikely to convert to customers. This will help reduce ad costs and improve your ROI. For example, you can add “male clothing” as a negative keyword to your campaign if your store only sells “female clothing.”
Optimise your ads for best delivery times
It can be cost saving to only run your ads when they are more likely to have more conversions. Likewise, it can be beneficial to set your ads to run during certain months of the year if you have seasonal products. The “Dimensions” tab can help you figure out when most conversions occur on your site so that you can set your ads to run during such times.
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Target with the right keyword match type
You do not only need to consider using negative keywords. You must also use the right keyword match type. With the right match type, you can either broaden or narrow down search terms to meet your campaign goal. You may not want your ad to come up for a broad match such as houses and run a higher cost per acquisition if your ad is a house painter ad. Neither would you want to restrict your ads to exact match keywords when a phrase match would allow more users to see your ads. That said, there are times when an exact match would get your ads to your target audience and be more effective.
Make good use of ad extensions
You can improve the performance of your campaigns, increase ad visibility, enhance click-through rates (CTRs) and reduce cost per click (CPC) when you add, review, and optimise your ad extensions. This includes adding additional links within your ads as sitelink extensions, linking to relevant product categories and pages, highlighting key features using callout extensions, and adding location and call extensions.
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Putting it all together
You need to think comprehensively and strategically if you want to reduce Google PPC costs while increasing conversion rates. The tips that have been shared in this article can help you improve the performance of your ad campaigns. With them, you can achieve better results and keep your ads within your budget.
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Read the blog post about using Microsoft Advertising in B2B for more tips.