It’s true: Google Ads is effective. When your business is visible for those highly specific, high-intent searches your ideal customers are making, you can see a substantial return. However, here’s the catch: it’s a crowded space. Everyone’s vying for attention, and because Google Ads operates on an auction system, the more advertisers there are, the pricier it becomes.

The good news? Numerous small tweaks can be made to connect with the right customers cost-effectively. You just need a little strategic thinking to come out ahead. That’s where I come in. In this article, I’ll guide you on how to reduce Google Ads expenses by:

• Focusing on the ideal audience
• Making your brand stand out
• Optimizing your landing pages

Target the Right Users: Spend Wisely

The initial step in controlling Google Ads costs is ensuring you’re not overreaching. This means allocating your budget solely to audiences most likely to convert.

1. Leverage Location Targeting

When setting up a new Google Ads campaign, the location targeting often defaults to your country. However, sometimes it defaults to “All locations,” encompassing the entire globe.

Advertising to individuals you can’t serve or who would be unprofitable is illogical. Google Ads provides highly adaptable location targeting features. Utilize these to include your prime locations and exclude those that will drain your budget. Pro tip: While many are fond of zip codes, ad platforms can struggle to pinpoint them accurately. Whenever possible, opt for city or neighborhood targeting instead of zip codes for improved reach. Also, ensure your advanced targeting settings are set to “Those in my area” rather than “Interested in my area”. The impact might not be huge, but every little bit counts.

2. Bid on Keywords with Higher Intent

Often, I encounter new accounts where desired results are elusive due to alarmingly broad keywords. (I’m not referring to match type here, which we’ll address shortly.) Consider this example: shoes. If your goal is selling shoes, I commend your ambition. However, the shoe market is fiercely competitive, making it crucial to advertise with precision. Let’s imagine you own a niche shoe store specializing in women’s golf shoes. Below is a list of keywords that might seem relevant, but they lack the desired specificity.

Now, here’s a list that’s far more targeted. These keywords will attract search traffic and clicks from individuals actively searching for precisely what you offer.

Naturally, these specific keywords will have lower search volumes compared to the broader list. However, our objective is not volume but sales. With a limited budget, concentrate on what you actually sell. Avoid high-volume keywords that inflate your spending and likely attract less qualified traffic. For a deeper dive, check out our comprehensive Big, Easy Guide to Keyword Research.

3. Stick to Phrase and Exact Match Keywords

Over the past few years, keyword match types have become less precise. Nonetheless, strive for specificity in the user queries you aim to match. For our purposes, I recommend focusing solely on Phrase and Exact match keywords.

Despite Google’s assertions about the effectiveness of broad match, higher-quality, more relevant queries stem from using more restrictive match types. This helps you avoid low-quality searches from unqualified users that broad match can attract, ultimately saving your budget from unnecessary drain. Curious if you’re overspending on Google Ads? Get a free assessment with the Google Ads Performance Grader.

Outshine the Competition: Make Your Mark

When aiming for cost-effectiveness in Google Ads, particularly against larger brands, differentiation is paramount. Here are a few straightforward tactics:

4. Utilize All Ad Extensions

A quick search for “small business CRM” reveals that most ads appear similar in their text. However, the standout is the monday.com ad, thanks to its use of image extension.

The image extension visually sets the monday.com ad apart. This splash of color stands out amidst the predominantly text-based ads. While this doesn’t necessarily mean other companies aren’t using image extensions, it highlights how monday.com gains an attention advantage in this particular search. Therefore, I recommend consistently employing every applicable ad extension.

1. Sitelink
2. Callout
3. Structured snippet
4. Image (learn how to set up image extensions here)
5. Call
6. Lead form
7. Location
8. Affiliate
9. Price
10. App
11. Promotion Within the Google Ads interface, navigate to Ads on the left sidebar and select Ad Extensions.

On this page, click the blue plus button to incorporate any of the listed extension types. By maximizing your use of extensions, you enhance your chances of capturing user attention on the search results page and standing out from the competition.

5. Employ Auction Insights to Shape Your Messaging

Not every search will yield ads brimming with extensions. In such cases, rely on your Google ad copy and messaging to stand out. Begin by identifying your competitors. If your campaigns are already active, utilize the Auction Insights report to pinpoint companies appearing alongside your ads. (Note: if the listed competitors don’t seem relevant, revisit your keyword list!) In the Google Ads interface, click Keywords on the left sidebar, then select Auction Insights at the bottom.

This will lead you to a report similar to the one shown below. It lists companies appearing alongside your ads and provides various metrics to gauge your performance against theirs. (You can learn more about the Auction Insights report in this video.)

Once you’ve identified your competitors, leverage tools like iSpionage for competitive keyword research. This will reveal their ad copy strategies and how to differentiate your approach. If specialized software isn’t feasible, conduct simple keyword searches to see what your competitors are doing. Pro tip: Exercise extreme caution with this method. Regularly searching without clicking your or any other ads signals to Google that you’re not genuinely interested. Over time, this will lead to fewer ads, both yours and your competitors’. So, if you must spy on the SERP, do so sparingly and use different devices to avoid establishing detectable patterns. Armed with insights from tools or SERP observations, ensure your ads stand out.

• If competitors consistently use the keyword (or a close variation) in Headline 1, consider a different approach. (Explore Google Ads headline examples here!)
• If discounts are ubiquitous, highlight your superior quality and explain your pricing rationale.
• If your competitor’s listed price is higher, proudly display your price and emphasize your affordability.

The essence of Google Ads success lies in standing out on the search results page. Based on your findings, craft a distinct message and become the brand that captures attention.

Optimize Your Landing Pages: Don’t Neglect the Finish Line

You’ve invested time and resources into crafting Google Ads campaigns to drive traffic to your website. Now, objectively assess your landing pages. Would you convert on them? Be honest. Remember, deceiving yourself only harms your results!

6. Prioritize High-Quality Landing Pages

High-quality landing pages translate to higher Quality Scores, ultimately lowering your cost per click. Gone are the days of complex landing page creation. Platforms like Unbounce and Instapage have made it effortless, even for non-coders and developers (like yours truly). Here are some pointers for crafting high-converting landing pages:

• Always include a clear call to action that’s tracked via conversion tracking.
• Present your product or service compellingly, persuading users to choose you.
• Ensure swift loading times on both desktop and mobile devices. For page speed optimization insights, utilize the Google PageSpeed Insights tool.

An example of a well-designed landing page: visually appealing, organized, and featuring a clear CTA. Remember, your landing page is the final step in securing a conversion. Neglecting it renders all your previous campaign efforts meaningless.

7. Be Strategic with Conversion Goals

Imagine this: you’ve successfully targeted the right audience, differentiated your brand, and led them to an impressive, fast-loading landing page. But is your conversion goal aligned with the customer’s readiness? Have you given it enough thought? Are you offering any alternatives besides a final sale? If you answered “no” to any of these questions, consider adding a secondary, less demanding call to action on your landing page.

• Are you urging a purchase? Perhaps include an email signup for your newsletter, offering updates on sales and promotions.
• Requesting information for a custom quote? Provide an easy-to-use calculator for quick estimations. While not your ultimate conversion goal, these actions can capture users who aren’t ready for an immediate purchase. Think of it as a consolation prize. By obtaining some user information, you can leverage it for retargeting across various ad platforms, re-engaging them and hopefully guiding them towards that desired conversion.

Start Saving on Google Ads Today

Google Ads’ structure empowers advertisers of all budgets to achieve impressive ROI, making it one of the most best digital advertising platforms advertising platforms available. However, harnessing its power requires knowledge and strategy. Implement these seven strategies to optimize your spending and maximize your budget’s potential:

1. Refine your location targeting
2. Focus on keywords with higher intent
3. Utilize only phrase and exact match keywords
4. Leverage the power of ad extensions
5. Craft a distinct and compelling message
6. Invest in high-quality landing pages
7. Strategize your conversion goals