If your business wants to make sales and establish your brand presence online, then you must be well aware of the potential value of Google Ads to help you attract and convert customers.
However, your overall costs for ads as measured in terms of cost-per-click (CPC) can quickly escalate – so you need an effective strategy to make sure you’re spending your ad budget wisely.
In this article, we’re going to lay out some recommendations that can help you lower your costs for various kinds of ads on the Google platform. However, if you really want to maximize your ad budget, we do advise you speak with one of our JXT Group digital marketing experts to map out your best strategy for ads.
Below are just a few key statistics and useful tips that can help your business lower your Google Ads costs:
Google Search Ads 
Google Search still reigns supreme as any online advertiser’s best starting point for building a brand presence online. Yet many businesses struggle to optimize their costs for ads on Google Search.
For some of the most recent statistics: certain research showed that in April 2020, the average CPC for Google Search ads was $2.76, though that might have been an anomaly just after the start of the global COVID lockdowns. Other reports indicate that for June 2020, the average was $2.39.
(Significantly, these averages are higher due to the higher average costs spent by legal and government. If you remove the legal industry from the sample, the average June 2020 CPC was just $1.72)
How does your business’s ad performance compare? If you’re looking for ways to save, try:
- Tip #1 – Choose your keywords based on volume and intent NOT just the cheapest cost (your highest converting keyword may be the most expensive but pay for itself in the long run)
- Tip #2 – Try the Google Search Network to display your ads on additional sites within the Google ecosystem that have a Search function
Google Shopping Ads
Google Shopping Ads have a different structure than Search, but they can be your best bet to connect with customers with an active intent to buy.
In April 2020, the average CPC for on Google Shopping was $.66 (with a range of $.29 to $1.07). In June 2020, the average was $.58 (with a range of $.17 to $1.55).
While it you probably won’t see any major overnight changes by altering your Google Shopping strategy, there are steps you can take to improve the performance of your ads and ultimately lower your costs for the long-term. Here are a couple Google Shopping tips to try:
- Tip #3 – Utilize negative keyword lists to your advantage by striking out the names of your big competitors so that you’re not paying for more expensive clicks to show up alongside major brands.
- Tip #4 – Check your product feed and make sure all your product attributes are accurate so that you can better match the intent of your ideal customer when they’re shopping online.
Google Display Ads 
Google Display ads work differently than the others, so it may be even more confusing to estimate your costs. Luckily, these ads are often the cheapest in the Google ecosystem.
For example, in April 2020, data indicated that the average CPC for Google Display was just $.41. However, if you remove the outlier of Occasions and Gifts from the sample, that number drops to just $.34.
Google Display ads can often be just pennies per click, so it might not be worthwhile to spend too much time seeking cost-cutting strategies. However, if you can capture some savings on Display ads, that’s money you can use for high-value keywords on the rest of the Google platform.
Here’s a tip you might want to try:
- Tip #5 – A/B test your audience by applying multiple target audiences to your campaigns to see which will perform the best. (This might even give you data you can use for your other campaigns!)
Do you want to make sure you’re maximizing your business’s Google Ads budget? As a recognized Google Premier Partner, our team here at JXT Group can support you with the most cutting-edge strategies customized for your online marketing goals.
To find out more, schedule a 15-minute introductory call with someone from our expert digital marketing team by calling 718-690-7302 or filling out our contact form.
