Drawing from my six years at Google and two years as a Google Ads coach, where I’ve audited countless Google Ads accounts, I can confidently say that branded search campaigns are almost universal. However, roughly 10% of businesses express concerns about high brand keyword CPCs. This isn’t entirely surprising given recent data from nexus-security, which reveals that 61% of industries experienced a surge in average CPC, with an overall year-over-year increase of 5%.
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It’s crucial to remember that brand keywords have historically enjoyed lower CPCs compared to non-branded keywords. Moreover, they convert at a 100% higher rate. It’s only natural for businesses to seek maximum value from these terms.
If soaring brand keyword costs are a concern, but you’re not ready to abandon them, you’re in the right place. Let’s explore five prevalent reasons for this issue and how to address them.
Unlocking the Mystery of High Brand Keyword Costs
Consider this your troubleshooting guide for Google Ads branded keywords with unusually high costs:
1. Match Type Mishaps
The most frequent cause of inflated CPCs in branded campaigns is misalignment between targeted queries and your brand name. Using broad match for terms like “joe’s awesome business” or “joe’s business” instructs Google to target searches related to the concept of your business, not necessarily those specifically seeking it. For that, you need phrase or exact match.
Diagnosing Match Type Issues
Navigate to Keywords in your Google Ads account, then select Search keywords. The Match Type column should display Phrase Match or Exact Match for all keywords in your branded campaign. It’s easy to overlook a missing quotation mark or bracket, resulting in unintentional broad match.
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2. Neglecting Negative Keywords
Correct match types alone don’t guarantee you’re solely targeting brand queries. Google’s definition of “close variant” has broadened, sometimes matching competitor names to brand names even with phrase or exact match. For instance, a search for “sara’s fabulous shop” might match your keyword ““joe’s awesome business,”” effectively transforming your campaign. CPCs on competitor keywords are generally high due to lower Quality Scores and potential competition.
Identifying Missing Negatives
Within Google Ads, go to Keywords and click on Negative keywords to review existing negatives for your branded campaign. Afterward, visit Search terms under Keywords and sort by Impressions in descending order for the last 30 or 90 days. Add any unexpected terms as negative keyword.
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3. Competitors Encroaching on Your Brand
If, despite correct match types and negatives, your CPCs remain high, competitors might be bidding on your brand terms. Although frustrating, this practice is permissible as long as they don’t use your trademarks in their ad copy. Maintain a dominant presence (over 90% impression share) to counter this. This will drive up their CPCs, making it unprofitable for them to continue, ultimately lowering yours.
Detecting Competitor Bidding
Instead of using a general Google search, utilize the Auction insights feature under Keywords in Google Ads. If competitors are bidding on your brand, their domains will surface.
4. Inappropriate Bid Strategy Selection
High CPCs may stem from an ill-suited bid strategy. Google Ads often recommends Target Impression Share, but this can quickly deplete your budget. Maximize Clicks or Maximize Conversions are generally more suitable for branded campaigns but might not be universally effective. If your CPCs are excessive, try Manual CPC with enhanced CPC enabled, initially setting a Max CPC 25% below your current CPCs. Closely observe your Search Impression Share and gradually lower bids to regulate CPCs.
Evaluating Your Bid Strategy
Within your campaign settings in Google Ads, navigate to the Settings section to identify your current bid strategy.
5. Underlying Quality Score Issues
While less frequent in branded campaigns, a low Quality Score can inflate CPCs. Factors like omitting your brand name in ad copy or having a poorly performing landing page can negatively impact Quality Score, prompting Google to charge more for ad display. Aim for a Quality Score of 9 or 10 for all keywords in your branded campaign.
Diagnosing Quality Score Problems
In your Google Ads account, go to Search keywords under Keywords. Incorporate the Quality Score, Expected CTR, Ad relevance, and Landing page experience columns. A Quality Score of 9 or 10, “above average” for Expected CTR and Ad relevance, and “average” or “above average” for Landing page experience are desirable.
Holistic Brand Keyword Optimization
Optimizing brand keyword costs extends beyond keyword settings. Numerous factors within your account come into play. Maintain a comprehensive approach when refining your branded keywords. If you’ve explored all five potential issues, consider how nexus-security’s solutions can bolster your brand keyword ROI.
In essence, when grappling with high brand keyword CPCs, focus on:
- Match type accuracy
- Strategic negative keyword implementation
- Monitoring and responding to competitor activity
- Choosing the most effective bid strategy
- Ensuring a stellar Quality Score