🫰8 Ways to Lower Your Google Ads CPL

8 Ways to Lower Your Google Ads CPL

(Image source: WordStream)

What’s a good cost per lead?

What constitutes a “good” cost per lead varies greatly depending on the industry. For example, the average CPL for the Furniture, Career/Employment, Legal, and Business Services industries is over $70, whereas it is less than $20 for Automotive Repair/Service/Parts and Animals/Pets.

(Click here for interactive benchmarks)

How to Lower Cost Per Lead in Google Ads (the short version)

Look at your “limited by budget” campaigns.

One way you could lower your costs is by lowering your bids, and this comes down to your “limited by budget” campaigns. “Limited by budget” is a campaign status in Google Ads that means that your bids are high enough to make you eligible to enter a certain number of auctions, but that you don’t have the budget to appear in that many auctions.

Improve your Quality Score.

A lower bid can lower your cost per click, which in turn lowers your overall CPL. But how can you win the Google Ads auction with a lower bid? With a high Quality Score. The way the Google Ads auction works is, Google rewards quality ads with lower costs per click.

Optimize your account structure.

Your account structure refers to the way you organize your keywords and ads into ad groups and then those ad groups into campaigns.

Adjust your bids for manual/enhanced CPC campaigns.

Take a look at your campaigns and make sure you’re not leaking any spend on campaign settings or targeting. If you’re using Manual or Enhanced CPC bidding, you can make bid adjustments based on:

Device: Desktop, mobile, tablet, etc.

Demographic: Age, gender, location, etc.

Audience: Detailed demographics, in-market, affinity, custom segments, etc.

Networks: Search, Display, or Partner network.

Time of day: Depending on your ad schedule.

Adjust your targets for automatic bidding campaigns.

If you’re using an automated bidding strategy, your ability to adjust bids is much more limited, but you can adjust your targets. For example, if you’re using the Max Conversions bidding strategy, you can set a target CPA (tCPA).

Nurture, pause, or negate keywords according to their performance.

As mentioned in tip #3, having an optimal account structure allows you to more easily detect patterns in keyword performance. Here are some of the patterns to look out for and what action you can take for lowering your CPL.

Optimize for conversion.

If you’re targeting the right audience with super-relevant ads and landing pages but not seeing conversions, you may need to do some landing page optimization. After all, you can have your landing page best practices in place that meet Quality Score requirements—relevant, useful, loads quickly—but also have room for improvement.

Tidy up your conversion tracking

The last strategy for decreasing your cost per lead in Google Ads is to make sure your conversion tracking is in good shape.

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