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How To Lower Your Cost Per Lead (CPL) In Google Ads

Hi Anurag, I'm running a campaign whose CPL is too high. I’ve done split ad copy testing, improved CTR, improving quality score, but still, CPL is not improving. What should I do? How can I improve my CPL? And by improving, I would guess you are referring to the cost per lead going down. That is not the right strategy. The right strategy is to increase your conversion rate and your CPL is going to go down because by reducing the cost per lead, you can go down to a certain extent. So this another analogy I will give you is, okay, I want to save more money, All right? So I want to reduce my cost of living, Right? So we take out all the luxury items, eating out, cinema, holidays or whatever. Then there will come a point where you cannot go down. You cannot cut the cost of your living because you have to eat, you have to drink, go to work, you have to pay your rent, mortgage, or whatever.

You just cannot go under that amount. So what do you do? You increase your earnings. You get a part-time job, you get a second job, you do a side hustle and then you work out. That's okay, now I can afford to do more because I've got more money coming in. So that's what you need to do exactly, or what I've just told you is increase your conversion rate. If your conversion rate is 10%, try to make it 15% and then 20%, and all of a sudden your cost per lead has come right down. So increasing your ad copy and testing all these things, yes, will help you increase your conversion rate and you are doing the right thing. But then you also have to look at your offer, how enticing that offer is, and how can you make it better so that more people go for it. That's what you want to do. Not just keep cutting costs because reducing the bids and not the cost, but the bids will then reduce your impression share because Google is going to show less or they are not bidding enough. We can't show your ads for more. You need to increase the ads. And the only way you can increase your impression share is by being more aggressive. So this is for all of you.

The person or company willing and able to pay the most to acquire a lead or a customer will always win. I'm going to repeat it once more and write it down because it's really important you get this. You will never fail in Google Ads or any kind of advertising. The person or company willing or able to pay the most to acquire a lead or a customer will always win. So you've got to make sure that you are bidding very aggressively and not just throwing money at Google or Facebook and paying the most for a lead. Also, have a look at what's your customer lifetime value and not just the first transaction. Are they coming back for recurring orders? How can you increase the average order value to get more money for the same cost per lead? Right? So the whole funnel has to be optimized and not just looked at at Google Ads and reducing your bids and reducing the cost per lead. You got to optimize each and every part of that funnel.

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