The 10 Best ways to Reduce Adwords Spend

Google Adwords is a proven way of obtaining targeted leads.  However, things can go horribly wrong when the account is badly managed. Leading to visitors not getting what they expect and unnecessary spend for the advertiser.

Here are our Top Ten Tips on Reducing your Adwords Spend:

1) Find and set negative Keywords

By looking at the ‘Search phrases’ report you can see what people are actually typing, which may not be the same as your target Keywords. For example, a Broad match on the word ‘accountant’ will also pick up ‘accountant job’. Do you want to pay for people looking for work?

2) Ensure that all Adgroup Keywords and Ads are related

Separation of Keywords and Ads into closely targeting Adgroups is crucial to a successful Adwords Campaign. If a potential customer searches for ‘Google Adwords Agency’ and sees an Advert for ‘Website Designer’ at best you’ll get a low CTR, at worst you’ll attract customers who don’t want your products and services – costing you money!

3) Quarantine low quality score Keywords with high impressions, poor CTR and no conversions

Did you know that Google Adwords scores your Keywords and uses it when deciding how much to charge you per click? It’s called the Quality Score and can be seen by turning on the column in the standard reports. The trick is to place Keywords with a high score together in one Adgroup. That way poor performing terms won’t affect the CPC (cost per click) of the good ones. Likewise, if a keyword has a poor CTR (click through rate), put with others that perform the same.

4) Manage greedy Keywords or they’ll spend all your money

It’s common for a small number of Keywords to spend a disproportionate ratio of the Campaign spend.  In such events better performing Keywords (usually measured by conversion rates) will be starved of the spend they deserve.

5) If you only sell locally, only advertise locally

When setting up any Campaign, make sure you set the appropriate Geo-targetting settings.  For example, if you only deliver your goods in Lancashire, don’t show your Ads to people living outside of your target region.

6) Reduce bids during poor converting hours

By carefully monitoring your conversion times you may see a pattern forming as to when sales are being made.  If most of your sales occur between the hours 7-8pm consider dropping the bid price outside of this time period.

7) Set bids on good average position

Put simply, don’t try and gain position 1 all the time – unless you’ve got a huge budget.  If you can get 30% more clicks for your budget by being No 3, then do it. You’ll receive a much better Cost Per Sale (or Acquisition) and/or lower spend.

8) Pause Keywords with high bounce rate landing pages

If you’re seeing that visitors are spending a relatively short time on your website, then perhaps these aren’t the keywords you should be targeting. It’s possible that they’re taking spend from better performing Keywords.

9) Don’t mix Search and display

Google Display ads and Search ads make bad bed partners.  As a rule you should place them in separate Campaigns to better manage the spend and ensure that the Quality score of the different traffic types does effect one another.  A wrong decision can end up costing you with higher Keyword CPC’s.

10) Use Conversion Tracking

To make accurate decisions you need to know when sales are being made and which Keywords these originated from.  This involves adding some tracking code to your website, which your website designer will easily be able to do for you.  Once in place you’ll be able to see how many sales have been made and how much revenue they generated – from which you can see an accurate Cost Per Sale (CPS).

Find out more on how we can optimise your site for Google Adwords here

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