InsightsPaid Search

3 Ways To Tackle Rising Acquisition Costs

Written by Emmeline Constanti Crosby

Posted on: July 24, 2023

A limited amount of data often leads to poor bidding choices, which results in poor performance and increased ad spend. Below, we looked at the average CPCs for some of our clients in the past few years, dating back to Q3 of 2019. The rising CPC trend is evident, particularly within the field of retail.

However, through the following three steps, you can learn how to enhance the data learnings of the algorithm and simultaneously combat rising acquisition costs, which are increasingly competitive within retail and financial spaces. 

1. Move From A Granular To A Consolidated Structure 

The granular SKAG (single keyword ad group) structure was previously the standard, due to its:

  1. Division of keywords corresponding to individual ad groups


  1. Potential for specific ad copy 

However, due to Google’s increasing match types, the SKAG structure has been rendered ultimately unnecessary and less effective compared to its counterpart, the MKAG structure. 

The MKAG (multiple keyword ad group) layout:

  1. Utilises multiple, tightly-themed keywords per ad group


  1. Consolidates data within RSAs

By having multiple keywords together that are closely themed, although you might not achieve as good a relevance as you would with a SKAG structure, you can combat this through the use of DKI (dynamic keyword insertion). Due to higher amounts of data going through the RSAs within a MKAG structure, Google can better optimise, therefore increasing CTR and CVR and resulting in better performance, and lower costs. 

2. Consolidate Your Match Types

Building search campaigns with ad groups that correspond with different match types is also a prevalent structure, but Google’s query level bidding has likewise rendered this layout ineffective. 

Instead, it is recommended to consolidate these match types into a single campaign and fewer ad groups.

This will lead to more stable results, as, similarly to the MKAG structure, much more traffic will be running through the RSAs, which can therefore learn faster and more effectively. 

3. Complete Your RSA Headlines To Increase Conversions

Within RSAs, ads with 10+ varied headlines often see a significant increase in conversion volume. For example, as shown in the table below, ads with 13-15 headlines are more likely to convert than those with 6-9, or a generally incomplete set.

Whilst this may seem like a simple and manageable aspect of your ads, it is essential to complete the number of headlines and descriptions available, monitoring to ensure optimal results. We also recommend downloading reports of your RSAs, and doing audits of the assets based on performance. 

As mentioned previously, insufficient data only results in incorrect bidding decisions, which leads to poor performance. By implementing the 3 strategies above, you can ensure that you don’t fall victim to the rising acquisition costs within retail and financial markets. 

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