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Here’s the transcript from this video:
The reason why some keywords are expensive and some keywords are cheap is because the expensive ones convert well, that’s why they are expensive! So try not to just go after the cheapest click because it may not be your best strategy. You may get the cheap click, but then you will not get the conversions whereas an expensive click with a higher conversion rate will give you better results, a lower cost per acquisition, or a better ROAS.
So I never recommend reducing the cost per click. Yes, by all means, if there are any savings to be made, by all means, try and save some money, but the strategy needs to be to increase profitability rather than reducing cost because there is a certain point if you keep on reducing the cost, your competitors may be bidding aggressively and they are going to out-rank you and outbid you in the auction and you’ll start to lose your search impression share and that’s what you don’t want to do.
So once you’ve got a handful of keywords, all you do is bid aggressively as the 80:20, 20% of the keywords probably give you 80% of the results. So be very aggressive on those 20 keywords, you don’t want to lose out on your search impression share, and on the rest of the 80% either reduce or you pause them if they are wasting your budget.
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