In the world of paid search, when you improve both return-on-investment (ROI) and cost-per-lead (CPL) or cost-per-acquisition (CPA), you’re able to reinvest cost-savings into your top ad performers or test new keywords, ads, and landing pages.
Below are 10 ways to lower your account’s cost-per-conversion and improve ROI:
1. Filtering/Sorting: Pause off active ad groups and keywords with high cost-per- conversion rates or high costs and no conversions:
High-CPL ad groups/keywords in past (use your best judgment on timeframe: 30 days, 60 days, etc.):
Find high-cost ad groups/keywords that have not converted in past (use your best judgment on timeframe: 30 days, 60 days, etc.):
2. Use “See Search Terms” to find negative keywords.
Sort keywords by costs and clicks to quickly find negative keywords hurting CPL:
Select the keyword with High Cost & High CPL keywords and click “See Search Terms”:
Add high-cost keywords that are not converting or have a high CPL as Negative Phrase Match at either the ad group or campaign level.
3. Ad Copy Optimization: Go into each ad group with more than 1 ad (which should be all of them!) and make sure the top converting ones (higher conversion rate/lower CPL) are showing. Pause off the poorer performing ad(s) if statistically significant. Write a new ad to test against the top-performer ad.
4. Geographic Reports: Find campaigns that have a high cost-per-conversion that you would like to lower and click the campaign (look at least 30 days back). Go to the dimensions tab and select View -> Geographic. Start with just Country/Territory to look at the highest level if there are countries/states that are not converting or have a high cost-per-conversion. Then exclude certain locations at the campaign level in the geo-targeting section of campaign settings:
5. Hour-of-Day Reports: Find campaigns that have a high cost-per-conversion that you would like to lower and click the campaign (look at least 30 days back). Go to the Dimensions tab and select View -> Time -> Hour of Day. Look for hours that have high costs and no conversions or very high cost-per-conversion and consider excluding these times or lowering bids under the ad scheduling section in campaign settings:
6. Segment by Device: Segment your campaigns by device to see if the campaigns are performing worse in mobile or tablets and consider excluding to improve CPL and ROI:
7. Segment by Network (Search Partners): segment your campaigns by network to see if the campaigns are performing worse in Search Partners or Display, and consider excluding to improve CPL and ROI:
9. Display Network – Managed Placements: Sort your managed placements by CPL and pause or delete any placements above goal. Then sort by cost and pause or delete any placements without conversions:
10. Landing Page Testing: Even if you’re content with your cost-per-conversion and ROI, try some A/B landing page testing or multivariate testing to continue to improve results long-term.
We hope you found these top 10 paid search tips helpful for cutting costs and improving ROI. What are the top ways you lower your own cost-per-conversion? Please chime in!