How We Reduced a Local Brand’s CPC by 40 Percent

Ad campaign running is part of every company’s kit if they are to succeed in marketing, but when costs start overshadowing results, it becomes an issue that needs immediate investigation. For a local brand, sky-high cost per clicks (CPC) were taking their ad funds by storm, making them dissatisfied with poor returns.

Over the course of two months, we worked closely with the brand to restructure their campaign plan, identify where improvements needed to be made, and add crucial optimizations. The result? A 40% decrease in CPC and a significant boost to traffic and engagement.

This is how we identified the challenges, attacked them head-on, and got results. If you’re campaigning yourself or doing it for clients, this will help align your advertising approach and maximize every dollar you spend.

Understanding the Initial Situation

When we first worked with this brand, their campaigns looked fine in appearance. They had already invested in Google Ads, targeting nearby customers within 20 miles of their store. Their service was niche and in huge demand, so building interest was never the issue.

But when we dug deeper into the data, we discovered some pain points:

• High CPCs were consuming the ad budget quickly, leaving little to spend on longer-running ads or testing different versions.
• The click-through rate (CTR) was disappointing, showing ads weren’t attractive to the target audience.
• Conversion rates weren’t making the spend worthwhile, leading to low ROI.

These indicators gave us a clear problem to solve, but we needed to understand why this was happening in the first place.

Identifying the Problems

Next, we diagnosed the root causes of the elevated CPC. Based on a full audit of their campaigns, we uncovered the following issues:

1. Ad Copy Without Relevance
   The ad copy focused heavily on general product attributes but didn’t connect emotionally with the target audience or include local context, which is crucial for smaller companies competing with large brands.
2. Irrelevant Keywords and Broad Match
   They relied mostly on broad match keywords, causing ads to appear for non-niche searches. For example, ads were triggered by unrelated searches, burning through budget quickly.
3. Low Quality Scores
   The Quality Scores were low because landing pages didn’t align with ads and lacked engaging content. As a result, CPC increased because they paid more per click.
4. Poor Audience Targeting
   The audience targeting was too broad, missing important demographics and interests. Ad spend was wasted on users outside their core customer segment.

These insights provided a clear blueprint to tackle the problems step by step.

Implementing Changes

To overcome these challenges, we used a multi-pronged strategy focusing on improving relevance, refining targeting, and enhancing performance. Here’s what we did:

1. Completely Revamped Ad Copy with Local Focus

We rewrote ad copy to be relevant and engaging for the local audience. This included:

• Keywords with geography modifiers (e.g., the city name)
• Unique selling points and clear calls to action encouraging store visits or calls
• Emphasizing customer value over product features (e.g., “Save big by supporting your local [industry name] professionals!”)

2. Switched to Targeted Keywords and Match Types

We eliminated all broad match keywords and switched to phrase and exact matches, making ads appear only for relevant searches. We also added negative keywords to block irrelevant queries.

Using tools like Google Keyword Planner and SEMrush, we pinpointed high-converting keywords with manageable competition.

3. Improved Landing Pages to Boost Quality Scores

Landing pages were updated to align closely with ads. Improvements included:

• Matching keywords in landing page headlines and ad copy
• Simplified design with clear CTAs like “Book a Free Consultation Today”
• Fast load times and mobile optimization

This increased Quality Scores, allowing Google to reward the brand with lower CPC.

4. Refined Audience Targeting

Using Audience Manager, we created precise demographic and interest-based segments. Instead of targeting everyone in the region, we focused on:

• Homeowners aged 30–55
• People actively searching for similar services
• Past website visitors and social media audiences

We also launched retargeting ads to recover visitors who hadn’t converted initially.

5. A/B Testing to Improve Performance

We ran A/B tests on headlines, ad images, and CTAs to discover the highest-performing combinations. Ongoing optimization ensured no spend was wasted.

Results and Analysis

The improvements paid off quickly:

• CPC decreased by 40%: Costs dropped significantly without sacrificing visibility.
• CTR increased by 25%: More targeted, relevant content engaged the audience better.
• Conversions doubled: Higher-quality leads entered the sales funnel.

The improved ROI enabled the client to reinvest savings into expanding campaigns, including Google Shopping ads.

Actionable Takeaways

If your campaigns are facing high CPC, here are some real-world tips you can apply:

• Conduct a detailed campaign review to identify inefficiencies.
• Use narrow match keyword types and negative keywords.
• Create high-quality, relevant ad copy aligned with landing pages.
• Refine targeting and retarget users who didn’t convert.
• Run A/B tests regularly to improve performance.

By focusing on these pillars, you can replicate this success and maximize your return on advertising spend.

Get Started Optimizing Your Campaigns

CPC optimization is about understanding your audience, refining targeting, and improving every detail from ad copy to landing pages. This small business now thrives with an ad strategy that works smarter, not harder.

Want similar results? Start with a free consultation or campaign analysis. We can help uncover opportunities you didn’t even realize existed.