The 2 Biggest Ways to Increase CTR and Save Budget on Adwords! (Part 1)

April 26, 2014   |   Joe DeMaria

Most small business owners are still likely to be sent into a clammy handed downward spiral of cost anticipation at the mere mention of the word "Advertising".

Internet advertising platforms like Google AdWords (PPC) have made advertising available to even the tightest of budgets, while also providing key insights through analytics.

Cost-Per-Click advertising is based on one simple algorithm (Higher Ad Relevence equals Lower Cost). This is the first of two quick tips to increase Relevance/CTR while driving down your costs!

Match Type
Match types determine how close to your chosen keywords user queries must be in order to show your ad. There are several types but we will focus on Google's Daily Budget Angel of Death (The Broad Match).

Broad Match
This is the default match type for new ad groups, and it is responsible for a huge percentage of your daily budget disappearing.

Here's how it works: Broad match means that if ANY one of the words listed in a keyword string you have chosen, are used in by a google user in a search query your ad may pop up.

Michael runs an improv theater. He wants to use AdWords CPC to drive pre-qualified, interested, local patrons to buy tickets to shows online.

Let's say he has the perfect landing page, the perfect ad, and the perfect keywords. He buys "Vancouver improv comedy" for one of his terms using the broad match setting.

Here are some of the queries that could trigger his ad:
  • what is improv comedy
  • improv shows in LA
  • comedy clubs in NYC
  • whose line is it anyway improv
  • ryan stiles improv
  • top improv theater companies
  • vancouver canucks

Those sort of irrelevent queries lead to bad clicks, budget waste, and lower Quality Scores (Which means your ads show less often, AND you'll pay more when it does show).

If the disinterested googler clicks it, you pay for a click that does nothing but waste your money. If the same googler doesn't click it, your ad performance takes a hit due to lower CTRs.

Quick Fix:

Modified Broad Match
The unlisted, holy grail of match types.

This one step can often cut your ad spends in half, while increasing your CTR exponentially.

Select Broad Match as your match type. Create your killer ad (Post on how to do that coming), and move on to the keyword list.

To utilize Modified Broad Match, use the same keywords you would normally bid on, but add a "+" between the words in the string. This now means that the user search query will have to include ALL of the words in your string (With some minor variations), without needing exact or phrase matching (Which decrease your impressions substantially).

So Michael's improved, modified-broad keyword list for his Vancouver based improv theater would include strings like this: "Vancouver+improv+comedy".

Now here are the sort of results he is likely to see:
  • improv comedy in vancouver
  • vancouver improv theaters
  • vancouver comedy shows
  • vancouver improvisors

You can see how this list is far more likely to yield the kind of clicks Michael wants to see, and because his ad is very relevant to the user's query, the user is much more likely to convert into a sale.

Even if a sale is not made, the improved and Quality Score and CTR will improve Michael's average ad position and lower his cost per click, allowing him to recieve more clicks from qualified, relevant users without raising his daily budget.

This single step is key to a successful "Low spend, high yield" campaign.

Thanks for reading!

By Joe DeMaria
Founder at JAD