How to achieve lower click costs in Google Ads

Are you searching for ways to reduce your click costs in Google Ads? Then follow along here, where I explain the fundamental factors behind your click prices in your Google Ads campaigns.

Ranking at the top of Google searches with Google Ads does not necessarily mean that you have to pay the highest click prices. What you are willing to pay for a click is only relevant to Google’s wallet at the moment someone actually clicks on your ad. That makes pretty good sense.

Click prices and your ad’s placement in the search results

The key factor determining the placement of your Google Ads ad is what Google calls AdRank (ad position), which is calculated using the following formula: AdRank = Max bid x Quality Score. This formula helps determine how much you pay per click in Google Ads.

As the formula shows, your maximum bid alone does not determine your placement – the quality score also plays a crucial role. The important concepts for achieving lower click prices, without compromising your ad placement, are therefore hidden in the quality score. But what exactly does that mean?

What is the Google Ads quality score?

The exact composition of the quality score is a closely guarded secret at Google. The quality score is a rating assigned to each keyword based on algorithms designed to show users the most relevant results. There are three key concepts to understand when it comes to the quality score, which you can also see in your Google Ads interface:

1. Expected click-through rate
   The expected click-through rate is Google’s estimate of the likelihood that an ad will be clicked on based on the keyword. It is a forecast, so it does not necessarily reflect your actual performance – your actual click-through rate is also considered, as well as previous click-through rates, ad position, and ad extensions. Read here how you can increase your click-through rate with ad extensions.
2. Ad relevance to users
   To achieve lower click costs, it is important that your ad is relevant to the search. It is not enough to have a generic ad that does not match the search intent. Users will not click your ad if it is not relevant to them.
3. Landing page experience for your Google Ads
   How relevant is your landing page (the page users arrive at after clicking your ad) to the specific search? Is it focused on the keyword, or is it about something entirely different? The design of your landing page also matters – is it user-friendly and intuitive, or messy and disorganised? You probably know the feeling when you land on a page that offers you no value. With the landing page experience, Google assesses whether your page provides value to the visitor.

When creating campaigns in Google Ads, it is important to remember that Google is a business that aims to make money from users’ clicks – both now and in the future. Therefore, it does not benefit them to show irrelevant results, as users may turn to Bing, Yahoo, or other search engines in the future.