Granular Keyword Lists Are Key to Your Google Search Ads Success
A client recently reviewed my keyword list, which was built from in-depth keyword research, and expressed concern about the high number of keywords. They were worried about the potential for high costs due to this expanded list. This is a common concern I hear, and I’d like to explain why having a well-structured, granular account with a variety of keywords is actually crucial for achieving success with Google Search Ads.
1. Relevance Drives Performance in Google Search Ads
The performance of Google Search Ads is all about relevance. The more relevant your keyword, ad, and landing page are to the user’s search intent, the higher your Quality Score will be. A higher Quality Score is key because it directly impacts your cost-per-click (CPC)—the better the Quality Score, the lower the CPC. Essentially, a higher relevance results in cheaper clicks and, consequently, a lower cost per lead (CPL).
But it doesn’t stop there. Hyper-relevant keywords and ads increase the likelihood that users will click on your ads in the first place. This two-pronged approach—getting more clicks and paying less for each click—is critical for account success.
2. How Granular Keyword Lists Drive Better Results
The best way to ensure that your ad and keyword are extremely relevant to the user’s search term is to build out every possible variation of relevant search terms. By doing this, you create a hyper-targeted approach where each keyword is matched with a tailored ad that specifically addresses the searcher’s intent.
This level of detail requires more work during the initial setup phase. It involves thorough keyword research to uncover every possible variation of terms your audience may use when searching for your product or service. But by creating a granular account structure—with detailed keyword lists—we can fine-tune bidding for each specific search query.
3. The Power of Effective Bidding in Google Search Ads
A granular keyword list allows you to adjust your bidding strategy for each keyword individually. Let’s say you’re running ads for the keyword “3-bedroom condo rental in West Coquitlam,” and you’re seeing leads at a cost of $10 per lead. Meanwhile, the more general keyword “Coquitlam condo rental” results in leads that cost $30 each.
With a granular account structure, we can increase the bid for the high-performing keyword and lower the bid for the lower-performing keyword, ensuring that your budget is spent on the best-converting search terms. Over time, this approach ensures that the budget is spent more efficiently, prioritizing keywords with the best return on investment.
This is especially important for long-tail keywords, which are typically more specific and cost-effective. Long-tail keywords tend to have lower CPCs and higher conversion rates, making them a crucial part of any successful Google Ads strategy:
4. How Granular Keyword Lists Lead to Better Results
By taking the time to perform thorough keyword research, building out granular keyword lists, and creating highly relevant ads, your Google Ads campaigns can achieve the following benefits:
- Better click-through rates (CTR): More relevant ads lead to higher engagement.
- Lower cost-per-click (CPC): Improved Quality Scores result in cheaper clicks.
- More overall clicks: Relevant ads generate more traffic.
- Increased focus on high-converting terms: You can allocate more of your budget to the most effective keywords.
- Reduced spend on low-converting terms: Cut back on keywords that aren’t performing well.
- Improved conversion rates: The end result is a lower cost per conversion and higher ROI.
This is what I call the real win-win for advertisers—a strategy that not only reduces costs but also maximizes the impact of your budget, ensuring better performance across the board.
5. Performance Max Campaigns and Preventing Cannibalization
In addition to traditional search campaigns, many advertisers are now running Performance Max (PMax) campaigns to reach a wider audience across Google’s entire inventory (Search, YouTube, Display, and more) with a single campaign. I don’t recommend these to my clients unless they are an eCommerce business. There are clear benefits to PMax for eComm like being in Google’s Shopping results and retargeting people with items they were interested in.
However, one potential concern when running PMax alongside Search campaigns is cannibalization—where the two campaigns compete for the same clicks, leading to inefficient ad spend. Without a well-structured, granular keyword list, you risk having your Performance Max campaigns overlap with your Search campaigns, potentially bidding on the same keywords and driving up costs. Also, PMax search ads are almost always going to be less relevant or engaging than Search ads that we have built around specific keywords.
By having a comprehensive keyword list for your Search campaigns, you can avoid this issue. By carefully structuring your campaigns and using keyword exclusions or more specific targeting for PMax, you ensure that your Search campaigns target highly relevant, intent-driven keywords, while your PMax campaigns can focus on broader audience targeting. This distinction ensures that your budget is used efficiently, with each campaign fulfilling a unique role in the customer journey.
In short, a granular keyword list helps you avoid cannibalizing your Search campaigns with PMax while still leveraging the power of machine learning in Performance Max campaigns. This allows you to get the best of both worlds: hyper-targeted Search ads and a broader reach with PMax, without overlap.
Conclusion
In summary, a well-structured Google Search Ads account with a granular keyword strategy is essential for achieving long-term success. The key benefits include improving your ad relevance, boosting Quality Scores, lowering CPC, and driving more conversions at a lower cost. By investing time in thorough keyword research and creating a detailed, focused account structure, you’re setting yourself up for better ad performance and maximizing your return on investment.
If you are using Performance Max campaigns (which you should only be using for eCommerce anyway), a comprehensive keyword list ensures your Search ads get the reach that they should leaving PMax to test potential new keywords. This comprehensive approach is the real win-win for advertisers, making sure every campaign works together seamlessly to drive the best results.