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Data Analysis Cuts Google Ads Costs by 31%

One of the reasons I enjoy working in digital marketing, and with Google Ads in particular, is that it requires me to use both my analytical skills and my creativity.

Creativity is important when you need to come up with ideas for new ad variations that you can use in split-testing.

And this week I want to share a great example of why data analysis is so important and how it can pay dividends for your Google Ads campaigns.

Mortgage or Mortgages

A few weeks ago I spent about half a day analysing several months worth of data from the Google Ads account of one of my mortgage broker clients. 

My goal was to see if I could lower their cost per acquisition (CPA) - i.e. the average amount they needed to spend on Google Ads to get each new lead from their website. At the same time, I didn't want to reduce the overall number of leads generated each week.

After slicing and dicing the data in various ways, a pattern began to emerge.

It seemed that people who used search terms on Google that contained the word "mortgage" (singular) were far more likely to convert than those whose search term contained the word "mortgages" (plural).

 

Yes, that's right - just a single letter 's' in someone search query seemed to make a huge difference. I could say with a fair degree of certainty that someone who, for example, clicked on an ad after searching for "mortgages for freelancers" was far less likely to submit an enquiry than someone who had searched for "mortgage for freelancers".

Once I'd established this, it made sense to go through the account and reduce the bids on all the mortgages (plural) keywords.

The Results

Once I'd made these bid changes I waited a week and then checked the results. The table below shows the key stats for the week after I lowered the bids on the plural keywords compared to the week prior to the change.

Leads

CPA

Before

65

£50.51

After

71

£34.73

Change

+9%

-31%

As you can see, we not only hit the goal of reducing the cost per lead - by an impressive 31% - but we also managed to increase the number of leads generated. 

Next Steps

If you're not already doing so, I strongly recommend you analyse your keyword and conversion data regularly. Yes, it takes up a bit of time, but if it results in you cutting nearly a third off your marketing costs like it did for my client, then surely it's got to be worth a try.

If the information in this post helps you improve your Google Ads results, please do let me know by leaving a comment in the box below.

About the Author David Miles

As a digital marketing consultant, author and trainer, I specialise in helping businesses in the financial services and healthcare sectors use the internet to get more enquiries and increase profits.

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