Challenge of Rising CPAs with Google’s AI-Powered Broad Match Recommendations

Brainlanbs’ recent report explored the usage of Google’s Auto Applied Recommendations to leverage the potential of broad match keywords. Despite the supportive results, it becomes imperative to incorporate negative keywords when using broad match keywords due to the possibility of an increase in CPAs.

Last year, Brainlab had produced a similar report that examined the performance of broad match keywords and discovered a 19% increase in conversions. The current report, however, is distinct, as it explores the impact of AI on broad-match keywords. It presents several key findings, such as the following:

Another important finding, that can’t be missed is how the CPAs got affected. In the previous year’s study, the rise in conversions was noticed at similar CPA, but in this year’s report the following was reported:

While we can’t deny the importance of broad match keywords, but by using broad match along with bid automation, you may see a rise in your CPAs as well. It is crucial to balance the extent of broad match’s reach with monitoring your CPAs. One way to do this is by tracking search queries and adding irrelevant terms as negative keywords.

Marketers can leverage third-party automation tools to identify negative keywords and reap the benefits of both worlds, just like how Google’s automation recommendations are the preferred approach for managing heavy lifting.

Why negative keywords are important?

We can’t help but reiterate the benefits of negative keywords. Negative keywords can solve these purposes:

• By targeting your ads more effectively, negative keywords can help improve your click-through rates.
• Negative keywords help prevent your ads from showing up for irrelevant searches, which can save you money by avoiding clicks from people who are unlikely to convert.
• Helps you better target your audience ensuring that your ads are seen by people who are likely to be interested in your product or service.
• Improves your quality score, which in turn can lead to lower costs per click and higher ad positions.

Note: Karooya’s Negative Keywords Tool is now free for accounts with ad spend less than $10,000 per month. Save 10-20% of your search ad spend for free. Sign up and start saving your ad budget now

Related Links:

• How to Identify Negative Keywords that Improve Ad Performance?
• How often we should generate negative keywords?
• What Key Discoveries Emerged From Our Negative Keyword Quiz?