Understanding High PPC for Certain Keywords in Google Ads: Why Loans, Insurance, Automobiles, Physics Readings Have High Competition

As a seasoned SEO professional at Google, I have had the privilege of managing various accounts for different clients, one of which was a law firm focusing on accidental claims. This experience has shed light on the significant competition and high PPC associated with certain keywords like loans, insurance, automobiles, and physics readings. In this article, I will delve into the reasons behind these high-cost keywords and provide actionable strategies to manage their cost effectively.

The High Cost of Certain Keywords

During my tenure at this law firm, I was particularly struck by the high cost associated with legal-related keywords. According to a survey by WordStream, industry keywords such as 'loans', 'insurance', 'automobiles', and 'physics readings' fall into the category of costliest keywords. These high-cost keywords are often used by businesses managing vast sums of money, leading to intense competition and thus, high PPC.

The survey categorizes businesses into 'financing and industries that manage vast sums of money'. This classification implies that there are numerous advertisers competing for these high-value keywords, making them premium and hence costly.

The Cost Factor in Google Ads

Google Ads, a significant component of the Google Search Network, assigns costs based on the competition level among advertisers. The cost per click (CPC) is influenced by the bid of the advertiser and the quality score of their ad. This creates a premium environment for keywords that attract a large number of advertisers, such as those related to loans, insurance, automobiles, and physics readings.

Strategies to Manage High PPC

While the high CPC for these keywords is inevitable, there are several strategies to mitigate their impact and achieve better results:

1. Cost Reduction Strategies

Through careful keyword selection and campaign optimization, it is possible to reduce CPC. For my client, we implemented the following strategies to achieve a 30-35% reduction in CPC:

Negative Keywords: Utilizing negative keywords to exclude irrelevant search terms can help reduce waste and increase the effectiveness of the ad. Search Network Ads: Optimizing ads specifically for the Google Search Network can yield better results with lower CPCs. Retargeting and Remarketing: Using retargeting and remarketing allows for better targeting of potential customers, increasing relevance and reducing CPC. Conversion Optimized Campaigns: Focusing on conversion-optimized campaigns can ensure that the budget is spent on the most relevant and high-converting traffic.

2. Enhancing User Experience

A key factor in reducing CPC is improving the user experience on the website. A user-friendly website with clear navigation and easy-to-find information can significantly reduce bounce rates and increase conversion rates. This, in turn, can lower the cost per conversion, making the campaign more cost-effective.

3. Leveraging Informational Graphics

Using informational graphics, such as infographics and images, can help capture the attention of potential customers and provide them with valuable information. This can increase click-through rates and improve the quality score, leading to lower CPC.

Conclusion

In conclusion, the high PPC for keywords like loans, insurance, automobiles, and physics readings is primarily due to intense competition in the advertising space. However, by implementing strategic keyword management, enhancing website usability, and leveraging effective ad techniques, it is possible to reduce CPC and achieve better results. If you have any questions or need further assistance, please feel free to reach out.

Stay tuned for more insights and tips on managing high-competition keywords in Google Ads!