How to Reduce the Cost of Your AdWords Campaigns

How to Reduce the Cost of Your AdWords Campaigns

Here are  actionable steps to optimize your AdWords campaigns:

Analyze & Improve Ad Copy Performance:

Ad Copy performance can be easily identified using two metrics. CTR (Click through rate) and Conversion rate. Any ad copy with High CTR and High Conversion rates are the best performing ad copies. When ad copies have high CTRs, they are relevant to search queries. High Conversion rates implies that the landing page of the ad copy is appropriate.

Using these two parameters you can segment ad copies into five groups:

    • High CTR, High Conversion rates: Increase bids, resulting in  more impressions
    • High CTR, Low Conversion rates: Problem = Landing Page, fix this to convert clicks. Low CTR, High Conversion rates: Problem = Ad Copies. They are not attracting your customer.
    • Low CTR, Low Conversion rates: Try pausing ad copies.
    • Low clicks and No Convesions: Problem = AdCopies that are draining your marketing dollars. Pause them.

You can easily identify this classification using LXRPlugin. On the LXRPlugin tool, you can go to “Analysis Report” tab and run “Ad Copy Performance Analysis” report for the above analysis. The tool will segregate ad copies into above five groups. Tool screenshot is below:

Analyze & Improve Ad Copy Performance

Analyze & Identify Quality Score gaps:


Everyone understands you need to provide relevant keywords to get a high quality score. High Quality score implies lower CPC and better results. But you can do more with quality scores. You should look for a report something as below: CPA (Cost per acquisition) Vs CPC (Cost per Click) at each quality score.

Analyze & Identify Quality Score gaps

In this type of graph, you should find whether the CPC curve is inline with your CPA numbers. Wherever there are gaps, those are keyword quality scores that should be improved. For example, in the above graph with a  quality score of 7, CPC is bit lower when compared CPA, so you may want to bid increase for 7 quality score keywords. For quality score 10, again, you want to decrease your bids. You can again use LXRPlugin to get above analysis.

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