How to Trim Google Ad Costs While Retaining Conversions
Google Ads are getting more expensive. In 2025, the average cost-per-click (CPC) is up 18% compared to last year. In some ecommerce categories like beauty and home goods, the increase is over 25%.
This rise is driven by three factors: more advertisers competing for fewer organic clicks, Google’s Smart Bidding pushing prices higher, and search results becoming increasingly dominated by paid listings. Even mid-funnel clicks are now priced like top-of-funnel traffic.
The good news? You can fight back without spending more—by optimizing smarter. Here are four ways to reduce costs while keeping your conversions strong.
Refine Your Keyword Targeting
The broader your keyword strategy, the more waste you’ll attract. Unfocused targeting often leads to low-intent clicks that drain your budget fast.
Instead, prioritize high-intent keywords that show strong purchase signals, like “buy” or “best [product] for.” Regularly review your search terms report to remove irrelevant queries and add negative keywords. The tighter your targeting, the lower your cost per conversion.
Improve Landing Page Quality
Google rewards ads that lead to fast, relevant, and helpful landing pages. A better landing page experience means a higher Quality Score—and that directly lowers your CPC.
Make sure your page loads in under two seconds. Keep your messaging aligned with the ad that brought users there, especially in the headline. And always have a clear, persuasive call to action.
A/B Test Your Ad Copy
Enhanced ad effectiveness leads to superior placements—and reduced cost per click. This is why experimenting with your copy is essential.
Conduct A/B tests on titles, descriptions, and action prompts. Even minor enhancements in click-through rate (CTR) can greatly lower your CPC. Higher-performing ads also grant you more exposure for less expenditure.
Adjust Bids by Time and Device
Not every click holds the same value. Certain times or devices yield significantly better conversions than others.
Evaluate your performance by time and device to identify gaps. Lower your bids during non-peak hours or on devices that underperform—like late-night mobile traffic. Shift that budget to your most productive periods for improved effectiveness.
Increasing CPCs don’t have to sabotage your ROI. With a smart approach, you can cut expenses while maintaining performance.
Hone your targeting. Enhance your landing pages. Experiment with your ads. Adjust your bids. Do this consistently, and you’ll maximize your ad budget—even in a costly landscape.
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