#1 The higher your Click-Through Rate, the lower the cost per click
As you can see, that keyword that got the highest Click Through Rate (33.4 %), that means that one that has been clicked the most, is with just 5 cent per click also the “cheapest”.
The lower my Click-Through rate gets, the more expensive gets the click, as you can see in the picture below.
That´s why it is important, if you want to keep the Adwords cost low, to setup and optimize your campaign, your keywords and your ads for a high Click-Through Rate
In contrast, this is a campaign that didn’t ‘work well at the beginning. As you can see, the costs per click are significantly higher (1.75) , to a large extend because of the low Click-Through Rate (a 4%, as opposed to the 38% CTR in the example above)
However, please note that sometimes even a higher Click-Through Rate may result in higher costs per click, as in the example below.
This is because some keywords are more “competitive” than others, or because the “Quality Score” of those keywords may be lower, so that despite the better CTR, they´re more expansive.
#2 Test all “Match Types” – you don´t know which one is going to perform best
Contrary to what some people are teaching, we found that you should always test all 3 match types (broad match, phrase match and exact match) since you cannot know at the beginning, which match type of your keyword will perform best. Here are 4 of our keywords taken from one campaign, and as you can see, in each of them a different match time got the highest Click-Through Rate:
#3 Always split test 2 different variations of the same ad:
The difference between the two can be significant.
Here you see how the first ad gets on average a Click Through Rate of 8%, while the variation gets a Click-Through Rate of 11.6 % – significantly more!
#4 Eliminate negative Keywords
The downside of having all 3 match types activated, especially “broad match”, is that Google will run your ad even when the searcher is looking for something completely different. That´s why it is important to eliminate keywords you don´t want your ad to show up.
In this example, those keywords cost us 85 Euro out of the total amount of 466 Euro, which is almost 20% of the cost that have been wasted on keywords we don´t want.
#5 Use “Call Extensions”
In this campaing I used call extensions, which means that poeple could call me when they see the ad. As you can see, 8,6 % did it.
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