How to Reduce CPC in PPC Campaigns

The list is short and everybody publishes it. Add negative keywords. Tighten your match types. Write ads that match the words people typed. Send the click to a page that keeps the promise.

All of it works, and it is covered properly elsewhere on this site. So none of it gets repeated here.

One word in it never gets a question put to it. Reduce.

The List Is Right. One Word Is Doing Three Jobs

The List Is Right. One Word Is Doing Three Jobs

Your average CPC is a number on a report. It can come down three ways. They look alike on the screen. Underneath, they are nothing alike.

One is to bid less. Another is to buy less. Or you can pay less for the same click.

Only one of those is a price coming down. Position works differently again, which is how ranking differs in PPC and SEO.

Bidding Less Is the Only One That Prints Its Own Price

Bidding Less Is the Only One That Prints Its Own Price

Drop your bids and your CPC drops. Nobody needs a guide for that one. Its bill is printed on the front of it. Your ad shows up less often, or further down.

Which is why it never turns up on a list of clever ways to reduce CPC. There is nothing clever about it.

Buying Less Brings No Price Down

Buying Less Brings No Price Down

Now take the standard list. Negatives. Tighter match types. A schedule that skips the dead hours.

Watch what each one does. It removes a search from the set you will buy.

The exclusion itself touches no price. That nine-dollar click is still on sale this afternoon. Somebody else is in the auction, and you are not.

So your average came down because the expensive one left the list. Never because a price came down.

The click that costs you least is the one you never bought. Nothing about it converts. Then again, no average includes it either.

Somebody Will Point at Quality Score

Somebody Will Point at Quality Score

And rightly. Cut the searches that never clicked, and the ads you have left get clicked more often. Google reads that. Over time you are worth more to the auction, so the clicks you kept get charged less.

Only read what that concedes. The exclusion lowered no price. It made you look more relevant, which is the third thing on the list arriving by the back door.

So one road runs from buying less to a lower price. It goes straight through being worth more.

Paying Less Is the Only Price That Came Down

Paying Less Is the Only Price That Came Down

Then there is relevance. An ad that matches the query. A page that keeps what the ad promised.

That one is different in kind. The searcher is the same. So is the auction, and so is the position on the screen. Yet the charge at the end is smaller.

Nothing left your account. Rather, the same purchase got marked down.

So that is the only price reduction of the three. It is also the only one that costs you no volume.

Two of Them Move the Same Number in Opposite Directions

Two of Them Move the Same Number in Opposite Directions

Buying less is subtraction. Fewer clicks arrive. Meanwhile paying less runs the other way, since the same money now buys more of them.

One shrinks what you bought. The other stretches it.

Still, both of them print the same line on the report. Average CPC, down twenty-two percent.

So the number you were told to reduce cannot say which of the two you did. It came down. That is all it knows.

Somebody Will Point at Automated Bidding

Somebody Will Point at Automated Bidding

Fair enough. Plenty of accounts run a strategy that sets the bids for you. Nobody there is dropping one by hand.

Only look at what that concedes. The first of the three is out of your hands. Take away the bidding, and the two left standing are the two the report cannot separate.

One of These Jobs Finishes. The Other Never Does

One of These Jobs Finishes. The Other Never Does

Buying less runs down. Those obvious exclusions get made early, and they never need making twice. New junk turns up in a trickle. So what is left afterwards is maintenance.

Good work. Yet the big wins go early. Then the number settles, while everybody wonders what broke.

Paying less has no end. An ad can always sit closer to the words somebody typed. A page can always keep more of what the ad said. Better still, it compounds. A smaller charge buys another click out of the same budget. Then that click is more evidence about what people search for.

So do the finite one first. This week. Then spend the rest of the account’s life on the other one. Neither move makes sense without the Google Ads auction underneath it.

Where the Reduce CPC Argument Stops

Where the Reduce CPC Argument Stops

None of this says the CPC is the wrong number to watch. A click you overpay for is real money leaving a real account.

Nor is buying less a mistake. Often it is exactly right. A click from somebody who was never going to buy is one you should never have been in the auction for. Cutting it is not shrinking your business. Instead it is closing a leak.

The claim here is narrower than it sounds. Two of the three ways a PPC campaign brings its CPC down have a cost attached. One does not. Yet the report hands you the same sentence whichever one you did.

Ignore the CPC. Count the Clicks

Ignore the CPC. Count the Clicks

Try this on your own account. It takes a minute.

Open last month beside the month before. Roughly the same spend in each. Your CPC came down, which is why you are pleased.

Now cover it with your thumb. How many clicks did the money buy?

More clicks on the same spend, and you paid less. So that is a genuine price reduction. Go and find more of it. Fewer clicks on the same spend, and you bought less. Which may well have been the right call. Only no price came down for you that month.

No statistic about other advertisers settles which of those you did. Yours is sitting in your own account.

Reducing CPC With To-The-TOP! in Calgary

Reducing CPC With To-The-TOP! in Calgary

That report showing a falling CPC turns up often enough at SEO Company To-The-TOP!. Somebody is pleased with it, and often enough they are right to be.

Then the first useful hour goes on working out which of the three happened. A Google Ads campaign built around relevance keeps paying long after the negatives have run down. So that is the half To-The-TOP! works on, for businesses across Calgary.

No guarantees. Search engine optimization runs on the same logic, since the words people type decide both. Good SEO keyword research feeds one and prices the other. Meanwhile the portfolio shows the keywords this work has reached. Three to six months remains the plain answer. The same column is where finding high CPC keywords starts.

Common Questions About Reducing CPC

How do I reduce CPC in a PPC campaign?

Three ways. Bid less, which lowers your CPC and your visibility together. Buy less, by excluding searches you do not want, which lowers the average without lowering a price. Or become worth more to the auction, which lowers what you pay for the click you were buying anyway. Only the last one costs you no volume.

Does a lower CPC mean my campaign is working?

Not on its own. Pause a campaign and its CPC goes to nothing. Bid a penny and you will see a beautiful number on almost no traffic. A falling CPC is a fact about a price. Whether the account works is a fact about what came out the other end.

Do negative keywords really lower CPC?

They lower the average, and they are worth the half hour. What they do is stop you buying expensive clicks that were never going to pay you back. The price of a click you kept only comes down later, if the change makes you worth more to the auction.

How long before better relevance shows up in my CPC?

It takes data. A week or two of clicks before anything moves, and longer on a quiet account. Read the direction, rather than any single day.

Is a high CPC always a problem?

No. A high CPC is a fact about how much other businesses want that search. What decides whether it hurts is what a customer is worth once you win one. Meanwhile that number is not in Google Ads. Instead it sits in your own books.

Contact SEO Company To-The-TOP! in Calgary

Questions about anything in this article, or about your own rankings? Talk to a Calgary SEO specialist directly.

Phone: (403) 308-5949
Address: 1509 14 Ave SW, Calgary, AB T3C 0W4

Hours:
Monday to Friday: 10:00 am – 7:00 pm
Saturday: 12:00 pm – 4:00 pm
Sunday: closed

Greg Ichshenko

Calgary SEO expert and digital marketing specialist,
developing advertising strategies for businesses of all sizes

(403) 308-5949

greg@to-the-top.ca
1509 14 Ave SW, Calgary,
AB T3C 0W4

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