7 Tactics to Cut Google Ads Costs for E-commerce

Today we're look into seven effective tactics I've used to reduce Google Ads costs while efficiency.

From quick fixes to long-term strategies, I'll show you how to streamline your advertising efforts and boost your bottom line.

1. Pause Unprofitable Products

One of the quickest ways I cut costs is by regularly reviewing product performance and pausing ads for items that aren't generating sales or have a low Return on Ad Spend (ROAS).

This simple yet effective tactic can have a high impact on your ad spend, with minimal effort required.

2. Exclude Your Brand from Performance Max Campaigns

If you're running brand search campaigns, I recommend keeping your brand terms out of Performance Max (Pmax) campaigns.

This prevents your campaigns from competing against each other, allowing you to focus Pmax on reaching new customers through non-brand keywords.

Some PPC experts, like Cory Lindholm ?? ???????? ???????????? ???????????? and Michael Nadalin , don't exclude brand terms from Performance Max campaigns.

They argue that this approach provides more data signals to the bidding algorithm and improves overall results.

The best way to determine what works for your business is to test it.

3. Refine Your Location Targeting

I always tailor campaigns to specific locations where products are available and in demand.

This prevents your ads from showing in areas where you can't deliver or where there's little interest, effectively saving you money.

4. Block Junk Websites and App Categories

Performance Max and other Google Ads campaigns can sometimes display ads on low-quality websites or mobile apps.

By actively blocking these placements, I help prevent wasted ad spend and ensure your ads appear on more relevant platforms.

For example I xclude mobile game app categories as they drive high clicks but no conversions.

Similarly, I block websites showing high bounce rates or low engagement to prevent ad displays there.

5. Use Negative Keywords

I add negative keywords to campaigns to prevent ads from showing up for irrelevant searches.

This tactic improves click-through rate (CTR) and reduces wasted clicks by ensuring your ads are only triggered by users genuinely interested in your products.

Example: If you sell "metal supplies" but not brass sheets, add "brass" as a negative keyword to prevent your ads from showing to people searching for that term.

6. Structure Performance Max/Shopping Campaigns Strategically

I organize campaigns and ad groups based on performance metrics like bestsellers vs. other products or high ROAS vs. low ROAS products.

This allows for more effective budget allocation and bidding strategies, prioritizing products that are already performing well or have high potential.

Example: Segment your Performance Max by performance:

• Bestsellers: Group top-selling products across categories, with higher budgets and aggressive bidding.
• High ROAS Products: Group consistently profitable items for confident bidding.
• Low ROAS or New Products: Allocate smaller budgets and test different strategies to improve performance.

7. Optimize Your Product Catalog

I optimize the product feed to meet Google's standards, ensuring it's current, accurate, and includes high-quality images, detailed descriptions, and relevant attributes.

This enhances ad quality and visibility, boosting performance and reducing costs over time.

Conslusion

Using these seven strategies can help cut your Google Ads costs and boost your online store's ad performance.

The key is to keep checking and adjusting your campaigns to find what works best for your business.

Remember, different tactics may work better for different types of stores and products.