Spend Less, Sell More: The Secret to Saving 40% On Your Adwords Spend

Picture this. You’ve just created a new advert that’s got a better click through rate than your previous efforts. You feel proud, and all warm and fuzzy inside. You have a baguette to celebrate. While munching, you notice this: Google’s just upped your ranking because of it.

So, yeah. Google officially loves you, and you’re no longer hungry. Yay? Actually, beyond simple sustenance and the abstract favour of a green robot and its binary buddies, you have much to gain here.

If you’d done the above, what you would actually have seen would be an increase in your keyword’s Quality Score (QS). That’s the out-of-ten number you see if you hover over the speech bubble in the ‘keywords’ tab’s ‘status’ column.

The Holy Grail: A Perfect Quality Score!

Many factors go into the calculation of your Quality Score (QS), and what exactly determines it, and by how much, is a source of constant debate (see Google’s own critique of QS here). However, the general consensus seems to be that click through rate (CTR) is the single most important factor.

That makes sense really doesn’t it? After all, Google owes its success, since the olden days really, to the unparalleled relevancy and accuracy of its search results. It seems to follow, therefore, that Google will willingly reward a high CTR ad, and with marvellous prizes if necessary (read: discounts on your average cost per click).

This is because Google’s audience is effectively ‘voting’ for it. Our own experience very much corroborates this line of thinking.

What Happens When You Improve Your Click Through Rate? 

Before we intervened in the campaign from which the above graphic was taken, the ad group was receiving a not un-respectable CTR of 3.6%. After optimisation of the campaign, we were able to increase this to 11.4% (pain au chocolats all round!) Note, we did not increase our bids as part of this, nor did we update any page content during this time.

Take another look at that graph above. See the inverse relationship apparently at play between CTR and Avg. CPC? This is where it gets interesting, fellow graph nerds: we saw this increase in CTR directly resulting in a Avg. CPC drop from $1.09 to $0.64. That’s a stonking 41% decrease!

What’s more, our average position also improved – by 10%, from 1.2 to 1.1. Yep, as well as charging less for the ad, it appears Google was also prepared to boost its competitive ranking.

Simply put, just by working on improving the CTR of the campaign, we were able to cut the costs of each click. Hence, we also improved our cost per conversion, by over 40%. If we were a werewolf hanging off a chimney, staring up at the moon, this is what we’d be howling:

Your time is precious. If you can’t dedicate masses of time to every nuance of your AdWords campaigns, just focus on optimising your campaign click through rates. 

Ok, that would be dialogue from the weirdest werewolf film ever. Still, we don’t know about you, but we’d pay good money to see this over yet another terrible Twilight. Either way, we hope the message you’ll take from this is is pretty clear.

With the above in mind (and we have a feeling you’re ahead of us now!), here’s the $0.64 question:

How were we able to increase the CTR so much in the first place?

Well, that’s another story for another time.

If you would like help with your Adwords feel free to get in touch www.wd.je.

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