If you are a business owner using Google Ads to promote your products or services, you might have noticed an increase in your cost per lead. Outsourcing Google Ads management can help solve this common problem.
Cost per lead (CPL) is the amount you pay to acquire one new lead or potential customer. It’s an essential metric to measure the effectiveness of your advertising campaigns.
There are many reasons why your CPL might be increasing. Here, you can learn the most common reasons why this could happen.
You can also discover how outsourcing Google Ads management can help you address them.
Poor Quality Score
The quality score shows the relevance of your Ads. It considers the following factors in your Google Ads campaign:
- Ad copy
- Landing page
If you have a poor quality score, your ads don’t appear highly or frequently in search results. This can result in fewer clicks and conversions.
To improve your Quality Score, you should create high-quality ads relevant to your target audience. This includes selecting the right keywords, writing effective ad copy, and designing a landing page optimized for conversions.
By improving your Quality Score, you can increase the effectiveness of your Google Ads campaigns and achieve a lower cost per lead.
Making changes like this can be challenging. If you need assistance, consider outsourcing Google Ads management to professionals.
Lack of Targeting Options
You must target your Google Ads campaign properly to achieve the desired results. If you fail to do this, it can lead to poor results.
For example, you may not target specific locations or devices. If this happens, it can lead to your ads showing up for people not interested in your product or service.
You should select the proper ad settings to improve your targeting options. This includes targeting specific locations, devices, and audiences most likely interested in your product or service.
Unoptimized Ad Copy
Have you optimized the ad copy? If not, you have not created ads focused on the user’s intent. You have not tested the ads to see the best version, either.
This means that your ads may not resonate with your target audience, which can result in fewer clicks and conversions.
To optimize your ad copy, you should focus on understanding your target audience and what they seek. This includes selecting the right keywords, writing effective headlines, and crafting compelling ad copy that meets their needs and desires.
Low Bid Price
It is necessary to remain competitive with your Google Ads campaign. To do this, you may have to increase your bid price. If you don’t do this, your ad won’t be competitive, so you aren’t getting the clicks and conversions you could.
You should focus on selecting the right bidding strategy and budget for your ads to improve your bid price. This includes understanding the competition for your keywords and adjusting your bids accordingly.
By improving your bid price, you can increase the chances of your ads being shown to your target audience. This translates into a higher click-through rate. Over time, it can lead to more conversions and a lower cost per lead.
However, it’s important to note that increasing your bid price is not always the best solution for reducing your cost per lead. Sometimes, optimizing your ad copy, targeting options, and landing pages can be more effective in generating leads and lowering your overall cost.
So it’s important to experiment with different strategies and track your results to determine what works best for your business.
High competition in your Google Ads campaign means that more businesses are bidding on the same keywords as you. This can drive up the cost per click and cost per lead.
To compete, you may need to increase your bid price. Another option is to improve ad quality. These strategies will help you remain competitive.
Optimize your ad copy and targeting options to improve your competitiveness in high-competition markets. This includes the following:
- Selecting the right keywords
- Writing effective headlines
- Crafting compelling ad copy
You should also target specific locations and audiences most likely interested in your product or service. This can help you reduce your overall competition and improve the effectiveness of your ads.
Negative keywords are keywords you specify in your Google Ads campaign that you do not want your ads to appear in. This means that if a user searches for a term that contains one of your negative keywords, your ad will not appear in the search results. Adding these can save you money and improve the relevance of your ads.
For example, if you sell car parts but do not carry tires, you can add “tires” as a negative keyword to your campaign. This way, your ads will not appear when someone searches for “car tires” or “buy tires.” This can prevent you from getting irrelevant clicks and wasting your advertising budget.
By using negative keywords, you can improve the targeting and relevance of your ads. It will also lead to a higher click-through rate and more conversions. This can help you lower your overall cost per lead and get more value out of your advertising budget.
It’s important to regularly review and update your negative keywords list to ensure that your ads are not showing up for irrelevant searches. This can help you maximize the effectiveness of your Google Ads campaign and get the most out of your advertising spending.
Placement & Device Settings
An important feature in Google Ads is placement and device settings. These will help you reach your target audience while making your ads more effective.
Placement settings allow you to choose where your ads will appear. Examples include Google Search or other websites displaying ads. Device settings allow you to choose which devices your ads will appear on. Examples include desktop computers, tablets, and mobile phones.
By selecting the right placement and device settings, you can improve the targeting and relevance of your ads. This leads to more clicks and conversions. For example, if you sell a mobile app, you may want to target mobile devices exclusively to ensure that your ads are shown to people most likely to use your app.
However, suppose your placement and device settings are not set up correctly. In that case, it can lead to unwanted clicks and increased costs. For example, if you have a desktop-only website, you should not show your ads on mobile devices. Users may click on your ad but cannot navigate your website effectively.
It’s important to regularly review and adjust your placement and device settings to ensure your ads are shown to the right audience on the right devices. This can help you improve the effectiveness of your Google Ads campaign and get more value out of your advertising budget.
Non-Optimized Landing Page Experience
Your landing page is the web page users are directed to when they click on your Google Ads. A non-optimized landing page experience can negatively impact your Cost Per Lead (CPL) metric. This reduces the chances of a user converting into a customer.
An optimized landing page encourages users to take a specific action, such as filling out a form or purchasing. The landing page should be relevant to the ad the user clicked on and provide clear information about the offered product or service.
A non-optimized landing page may have confusing navigation or irrelevant information. This can lead to a high bounce rate and reduced conversions. Additionally, slow loading times or unresponsive design can negatively impact the user experience.
To improve your landing page experience, consider using clear and concise messaging, optimizing page load times, and ensuring your landing page is easy to navigate. You can also consider using A/B testing to see which landing page design and messaging work best for your target audience.
By improving your landing page experience, you can increase the chances of converting users into customers and reduce your Cost Per Lead in Google Ads.
Incorrect Campaign Setup
When people want to advertise their products or services online, they often use a “campaign” tool. It can help them get the word out. However, setting up a campaign can sometimes be tricky, and mistakes can happen.
One common mistake that people make is setting up their campaigns incorrectly. This can happen for various reasons, such as using the wrong settings or targeting the wrong audience. When a campaign is set up incorrectly, it may not reach the people most likely interested in what’s being advertised.
For example, let’s say someone is trying to sell pet food. If they set up their campaign to target people who don’t have pets, they won’t get very many clicks or sales. Alternatively, if they set up their campaign to target people who already buy pet food from another company, they may not be able to convince them to switch to their brand.
To avoid making mistakes when setting up a campaign, it’s important to double-check all the settings and targeting options before launching the campaign. It’s also a good idea to test the campaign with a small audience first to see if any changes need to be made before rolling it out to a larger group.
Outsource Google Ads Management to Improve Results
Many factors can contribute to increased cost per lead in Google Ads campaigns. By outsourcing your Google Ads management to a qualified agency, you can ensure that your campaigns are optimized for maximum performance and minimum cost per lead.
Remember, a successful Google Ads campaign requires ongoing monitoring, testing, and optimization to achieve the best results.