Is your business feeling the squeeze of the current economic climate? With costs rising across the board, profit margins are shrinking. The last thing you want to be doing is handing over a huge slice of what’s left to Google, especially when costs per click were going up long before everything else! In this article, we’ll look at ways of reducing CAC (customer acquisition cost) for Google Ads campaigns. We’ve got some simple strategies to help you preserve your margins or even improve them to drive growth for your business. What is Google Ads CAC? Let’s first set out what we mean by Google Ads CAC. Your customer acquisition cost is the amount it costs you to get a new customer from your Google Ads. Google Ads metrics like CPA (cost per action) and CPC (cost per conversion) factor in only your ad spend. Remember your CAC for Google Ads actually includes all the spend that goes into your ad campaigns, including design, copywriting, salaries, commissions, and admin. How to calculate Google Ads CAC Before starting to look at ways of reducing CAC for Google Ads campaigns, you first need to know your current CAC. This can be calculated by simply taking the total amount you spend on Google Ads in a particular period and dividing it by the number of new customers acquired via those ads. That gives you the average amount it costs to get a new customer from Google Ads. Keep in mind that it’s the total amount you spend on Google Ads, not your total Google Ads spend. Factor in the things we’ve mentioned above, like the time that’s spent on creating, maintaining and reporting on Google Ads. You’ll need to put monetary values on all of those things in order to accurately calculate your CAC. Strategies for reducing Google Ads customer acquisition costs Let’s take a look at some of the best strategies for reducing Google Ads CAC so you can lower the cost of bringing new customers to your business. 1. Ditch low-performing ads If your Google Ads campaigns are running profitably, it’s easy to bring some low-performing ads along for the ride inadvertently. Dig into the details of your campaigns to find out which ads are bringing in new customers most cost-effectively. Stop ads with high CAC and especially stop those that are not bringing in sales at all. Even for ads that are working well, use split-testing to improve performance. Test colors, copy, calls-to-action, and audience targeting — see what lowers CAC for your ads, then do more of it. 2. Ditch low-performing keywords It is a very simple point, but one worth reiterating: do your keywords actually match your ads? If not, this could be generating clicks on your ads that do not ultimately result in sales. Deadweight keywords that are not driving the right people to your website eat up your budget and inflate CAC. Google rewards ads that already have closely matched keywords with better placements and cheaper clicks, both of which will reduce CAC. So that’s definitely the way to go. To optimize your keywords: Choose keywords that are closely related to your ad intent Check the search terms tab in your Google Ads account every couple of weeks, adding low-performing terms to your negative keywords list and top-performing search terms to your campaign keywords list Monitor quality score, which is Google’s measure that your keywords match your landing page Use a manageable number of keywords (ideally less than 20) per ad group Don’t let Google Ads settings like broad match keywords undermine your good work 3. Delve into your CAC in Google Analytics Your Google Analytics data could contain the answer to lower Google Ads CAC. Take a look at conversions from your Google Ads campaigns and consider: Which days are best for conversions? What times are best for conversions? Where are new customers based? Which devices do new customers use? Maybe your Google Ads are most successful when targeting people in Belgium using desktop devices on Saturdays. Tailor your ad campaigns to reach the right audience at the right time to reduce CAC. McDonald’s Hong Kong is using this approach to increase app orders. Collecting real-time ecommerce data via Google Analytics 4, McDonald’s used predictive audiences to find the customers most likely to order again within seven days. These predictive audience segments were then exported directly to Google Ads. The resulting campaign increased conversions by 550% and decreased acquisition costs by 63%. [tip]Littledata's Google Ads to Google Analytics connection gives you accurate reporting for better CAC calculations and improved retargeting.[/tip] 4. Improve your tracking If you’re not able to get the sort of data we’ve just discussed from your Google Analytics, you might need to improve your tracking. This will ensure you can accurately determine: Which Google Ads campaign has driven a particular click What that potential customer did when they landed on your site Whether it converted into a sale 5. Tackle your hidden CAC We’ve already discussed how CAC goes beyond CPA, which is the tip of the iceberg. That figure is based on your ad spend — but what about the cost of time and resources managing your Google Ads campaigns? Using Juni’s Google Ads integration you’ll be able to reduce administrative costs with features like Google Ads automatic receipt generation, a centralized overview of your ad accounts in real-time in a single dashboard, and monthly invoices pulled automatically from your account. 6. Create and test landing pages It’s tempting to find an ad that converts, direct people to your homepage or a category page, and wait for the sales to come in. That’s great, but how much higher would your conversion rate be (and consequently how much lower would your customer acquisition cost be) if you created a custom landing page dedicated to the proposition of your ad? Once your landing pages are in place, you can run A/B tests to improve your conversion rate. Map software Radar created a suite of landing pages on which the copy was tailored to the intent of the ad that the potential customer had clicked. The result was a 50% increase in conversions and therefore a huge reduction in their Google Ads CAC. Create further savings by using: Sitelink extensions, which allow you to create links to multiple landing pages within a single ad Image extensions, which places a CTR-boosting image next to your ad Callout extensions, which enable you to add extra text to promote free shipping, discount, price matching and other benefits within your ad 7. Use remarketing Remarketing — the Google Ads version of retargeting — allows you to reach people who have already visited your website via Google’s display network. Warmer leads usually result in a higher conversion rate. That higher conversion rate should translate to a lower CAC on Google Ads. Fintech company IndiaLends used remarketing to reduce its customer acquisition costs by 53%. Just keep in mind that this approach still needs people to find their way to your website initially. 8. Use bidding strategies One way to make your ad budget go further and reduce acquisition costs is to use bidding strategies. There are a range of options for bidding strategies within Google Ads automated bidding. These include enhanced CPC, maximise conversions, maximise clicks, and target return on ad spend (ROAS). Any of these options may offer a route to lower CAC. For something that’s right on the money, experiment with target CPA, which essentially allows you to name the CAC you want to achieve. But remember, Google Ads is not one size fits all. Octopus Energy cut acquisition costs by 36% when it switched bidding strategy from target CPA to target ROAS. There are also third-party apps that will help you to implement bidding strategies. Cosmetics brand Charlotte Tilbury Beauty used Scibids and was able to cut its acquisition costs by 29%. 9. Test user-generated content User-generated content tends to perform better and costs less per click across all platforms. Run tests to see whether this applies to your Google Ads accounts. You could choose to use user-generated content from YouTube videos, customer reviews, Google Seller Ratings, or find another way of incorporating user-generated content within your ads. Danish ecommerce brand Cykelpartner reduced its acquisition costs by 11.14% — saving the business more than €40,000 per year on Google Ads in the process — by incorporating reviews within its ads. 10. Get cashback on your Google Ads spend A simple way to boost ROAS and reduce CAC is to get some of your Google Ads spend paid back to you. That’s exactly what Juni offers. When you pay with your Juni card, you’ll receive 2% cashback for your first 30 days, and up to 1% cashback thereafter. Excellent Sneakers gets more than £1,000 paid into its account every month as cashback on its ad spend. The result is that each click, conversion and customer acquisition costs less than would otherwise be the case. Start reducing your Google Ads CAC now As with any process for optimizing paid media, reducing CAC for Google Ads is going to involve some trial and error. Different brands, products, and audiences need different approaches. You can get to work immediately on some of these strategies and start to build up an idea of what works for you. For some quick wins: Study Google Analytics for useful conversion insights and update your campaigns accordingly Find underperforming ads, mismatched keywords, and other Google Ads basics that are pushing up CAC Create and test landing pages that are closely aligned with specific ad groups, keywords, or campaigns Start earning cashback on your Google Ads spend This is a guest post from Juni, the financial platform built for ecommerce that ties together physical and virtual cards, accounting, analytics and digital advertising platforms, giving businesses a holistic view of their finances. Get 2% cashback on your Google Ads spend for 30 days, and up to 1% cashback thereafter, when you get Juni.

As a Shopify merchant, you probably use a number of marketing strategies to drive unique traffic to your store.  With the help of SEO marketing, PPC ads, and even influencer advertising, you will notice a significant increase in traffic to your site. However, not all new visitors ensure a conversion (most don't), and not all Shopify marketing strategies are created equal. In fact, over 75% of all online businesses report that new visitors hardly convert or commit to making a purchase.  If you're finding many of your shoppers stop midway through the purchase funnel (either after adding an item to cart or not purchasing after multiple store visits), thenGoogle dynamic remarketing ads  sounds like the perfect solution for you. Campaigns from these types of ads result in increased sales and greater visibility among potential buyers. With the full guide below to creating dynamic remarketing ads that drive higher-quality traffic to your store, you'll give shoppers the extra push they need to convert.   What are Google dynamic remarketing campaigns? Google’s dynamic remarketing campaigns are special Google Ads campaign types that target users who have already visited your Shopify store at least once. These campaigns are fully customizable; different ads can be used for different visitors based on their interaction with your store. As a concept, remarketing ads were born from the idea anyone who has visited your store or clicked on a product must be interested in a purchase. While this may seem like an assumption, the stats don't lie. The main job of remarketing campaigns is to follow up with visitors and remind them of their initial interest, which inducing them to make the purchase. For example, let's say you sell sports apparel on your Shopify store. A visitor on your site looks up a pair of Nike shoes, reads the product description, stays on the page for 45 seconds, and then exits the tab. With a Google dynamic remarketing campaign, you can send targeted ads for Nike shoes to that visitor based on the product page they visited. You can create these campaigns with multiple iterations as well. For instance, you can split your visitors into customizable audience lists and have Google send out custom ads based on the list they belong to. These lists include shoppers who visited your home page, product pages, added an item to cart, and more.  Why Shopify merchants need Google dynamic remarketing campaigns  There are many advantages of using Google dynamic remarketing ads in order to meet your sales goals and increase your business’s growth. There are many advantages of using Google dynamic remarketing ads in order to meet your sales goals and increase your business’s growth. Here are a few of the best reasons for you to sue such a campaign using a Google ads dynamic remarketing guide.   Reason 1: Encourage shoppers to return to their carts About 75% of shopping carts are abandoned without a completed checkout. This is where remarketing ads can make a difference. Most shoppers simply browse or add things to their cart for a purchase at a later date. You can create a campaign that targets such kinds of visitors and remind them of their interest which will nudge them into making a sale. If your store has a special offer, you can also add this to the ad which sweetens the deal for the customer. Reason 2: Personalized ads Recent studies by Accenture show that customers prefer personalized ads. Not surprisingly, the chances of a shopper making a purchase increase significantly following a "personalized" ad. Google dynamic remarketing campaigns are tailor-made for ads that feel personal and highly targeted.  One way to do this is sending customized emails based on past shopping behavior on your site. This creates a personal connection with the customer and makes them feel like you care about their experience and patronage. Reason 3: Returning customers Returning customers tend to spend more money than any other type of shopper. A remarketing campaign wades through the sea of choices and reminds customers of their previous spending history. These types of targeted ads will boost your sales and create a stronger bond with your customers. Reason 4: Updating shoppers One of the top advantages of a remarketing campaign is showing new products to past (interested) visitors.  For example, if you have recently expanded your product line to sell plus-size clothing for women, creating a campaign about this update will keep you relevant. A shopper who couldn’t find her right size (but liked the style of clothes at your store) has a better chance of returning to your store. You can also use the campaign to promote customer loyalty programs. Reason 5: Great ROI Blue Mist Marketing found remarketing campaigns cost 56% less than other types of marketing strategies. Google dynamic remarketing campaigns give you relevant data to show exactly how much you are profiting with respect to your time investment. Based on this data, you can create more effective marketing ads. How to create a dynamic remarketing campaign in Google Ads Even with minimal coding experience, dynamic remarketing is fairly easy to set up. Google automatically creates 5 different customer match lists based on the pages shoppers have visited on your store. These include: Converted customers Homepage viewers Product Page viewers Shopping cart abandoners Category Page viewers You can also customize these lists. However, if this is your first time using dynamic remarketing, we suggest you use Google’s list and make changes later. Creating a remarketing campaign is a simple 3-step process. For success, carry out the following steps in order: Make sure that your Google Merchant Account is linked with your Google Ads account Using the right tag, add the Google remarketing pixel to your online store Set up a bid after you have created your desired dynamic remarketing ads Step 1: Link your Google Ads account with your Google Merchant account 1. Go to the Google Merchant Center. Click on the three small dots in the top right-hand corner next to your icon. Click on Account Linking. 2. Add your Customer ID for Google Ads, and then click on ‘Send link request’. 3. Select the Settings to a cog in your Ads account, and click ‘Linked accounts’ from the drop-down menu 4. Select the Google Merchant option 5. You will see a request in your Google Merchant Center like the screenshot below: 6. Select ‘View request’, and click on ‘Approve’. It will say ‘Approved’. Your Google Merchant Center will be now linked with Google Ads. [note]If you want to audit your Google Merchant Center, check out the Google Merchant Center audit guide.[/note] Now that you've linked your Google Ads account with your Google Merchant Account. Let’s move on to Step 2. Step 2: Use the right tag & add the Google remarketing pixel to your Shopify store Go to ‘Shared Library’ in Ads, and select ‘Audiences’. Select website visitors and click on ‘Set up remarketing’. Check the “use dynamic search ads” box and select the type of business from the dropdown. Click on 'Set up remarketing'. Select ‘View Ads tag for websites’ and then add the code to have the remarketing pixel on your website. For Google to build the lists, you'll need to first identify your category pages, home page, checkout pages and product pages. Step 3: Create your dynamic remarketing ads Now that your Ads account is linked and you've added the Google remarketing pixel, the next step for you is to create your Dynamic Remarketing Ads: Use the Google Display Network to create a new campaign. Select the option that says ‘Take action on your website’. Name your campaign and fill the settings as you would do for a search campaign. Tick the box next to ‘Use dynamic ads’ to confirm that you want to use dynamic ads. Select the business area and the merchant feed you choose for your dynamic ads. Save the campaign, and create your first ad and relevant ad groups. How to create Google dynamic remarketing campaigns with AdNabu  AdNabu dynamic remarketing app is a convenient app that helps Shopify merchants simplify  process of creating customized and targeted remarketing ads. It takes out all the guesswork and offers full customer support while merchants install and run their ad campaigns.  AdNabu automatically creates the remarketing tag on its own, saving you the effort of doing it yourself. It applies this tag to all of your site pages, scans each relevant visitor profile for matching campaigns and ensures audiences are properly created in Google Ads.  Here is how to easily install the AdNabu dynamic remarketing app: Login in to the Shopify app store Use the search bar to find AdNabu Dynamic remarketing App Select the Google Ads Dynamic Remarketing App Select Add App Link your Google Ads account Login with your Gmail address linked with your Google Ads account Read the terms & conditions and allow permission Your Shopify store will show a success page. Google Dynamic Remarketing app is now live! Google Ads conversion tracking for Shopify success Remarketing ads are a great strategy for stores of all sizes. But if you can't track how ther ads are performing or converting, what's the point? Linking Google Ads with Google Analytics is the easiest and best way to track your campaigns to make adjustments and improvements over time. But only one tool connects them with 100% data accuracy. Littledata's smart connection for Google Ads automatically pulls your Shopify data into your Google Ads account, so you can retarget ecommerce segments and track your sales easily. To name a few, the connection: Increases your Google Ads ROI with Shopify data for smarter retargeting Get back visitors who abandoned cart Retarget your users who viewed product details but didn't buy Prevents you from wasting money acquiring visitors who have previously purchased Get consistent data across both platforms View Google Ads costs in Google Analytics Connect Littledata's Shopify app for accurate tracking of checkout steps [note]You can try Littledata free for 2 weeks and test out the connection for yourself![/note] Wrapping up Google dynamic remarketing campaigns have proven to be a cost-effective, sales-boosting marketing move. One of the biggest advantages of using these campaigns is the ability to capture returning shoppers. Without a loyal customer base, your store can't survive in a market where merchants live and die by churn. Capturing the attention of shoppers is vital tom Shopify success, and Google dynamic remarketing does just that!   This is a guest post by AdNabu. AdNabu helps improve sales in Google Ads for ecommerce companies. If you are running search, shopping or display campaigns in Google Ads, their software will be able to increase your sales. Sign up today for a 14-day free trial.