How I Reduced a SaaS Company's CPC by 40% Using SKAGs

Last year, a B2B project management software company approached me with a common problem: their Google Ads cost-per-click was spiraling out of control. They were spending $50K monthly with diminishing returns. Their average CPC had climbed to $12.47 – brutal even for the competitive project management software space.

"Sam, we're bleeding money here," their CMO told me during our first call. "We need someone who can actually fix this, not just manage the decline."

After diving into their account, I spotted the issue immediately. Their account structure was a mess – broad match keywords competing against each other, generic ad copy, and no real segmentation strategy. Classic symptoms of an account that had grown organically without strategic oversight.

Enter the SKAG Strategy

I proposed implementing Single Keyword Ad Groups (SKAGs) – a technique I've refined over the past decade working with SaaS clients. While some PPC specialists consider SKAGs outdated, I've consistently seen them work wonders for B2B companies with high-value conversions. This approach is particularly effective when combined with the proper documentation and SOPs to ensure consistent implementation.

"The SKAG approach Sam implemented transformed our account. We went from questioning our entire Google Ads strategy to making it our primary acquisition channel in just 60 days."

The Implementation Process

Here's how I restructured their account:

1. Keyword research deep-dive: I identified their 20 highest-converting keywords from historical data
2. SKAG creation: Built individual ad groups for each keyword, using exact, phrase, and modified broad match types
3. Custom ad copy: Crafted highly specific ads for each group, ensuring the keyword appeared in headlines, descriptions, and URLs
4. Tailored landing pages: Worked with their web team to create keyword-specific landing pages that maintained message match
5. Negative keyword implementation: Developed an extensive negative keyword strategy to prevent cannibalization

The most challenging part wasn't the technical implementation but convincing their team to be patient. "This looks like a lot of work for minimal gain," their PPC manager said during our restructuring. I've seen this reaction before – the SKAG approach initially seems excessive until the results start flowing in.

The Results: Numbers Don't Lie

Metric	Before	After (60 Days)	Change
Average CPC	$12.47	$7.32	-41.3%
Conversion Rate	2.3%	4.7%	+104.3%
Cost Per Acquisition	$542	$312	-42.4%
Quality Score (avg)	5.2	8.1	+55.8%

Within 60 days, we had achieved a 41.3% reduction in CPC while simultaneously increasing conversion rates by over 100%. The improved quality scores were particularly satisfying – proof that Google rewards relevance and structure.

The most significant win? Their cost per acquisition dropped from $542 to $312, allowing them to scale up their ad spend without increasing their overall budget. By month three, they were acquiring twice as many customers for the same ad spend.

Key Lessons

This project reinforced several principles I've seen consistently throughout my career:

• Account structure matters more than fancy tactics – the fundamentals still win in PPC
• Message match between keywords, ads, and landing pages remains the holy grail of conversion optimization
• Patience pays off – the best PPC results rarely happen overnight

While SKAGs require more initial setup and maintenance, the ROI speaks for itself. For high-value B2B conversions, I haven't found a more reliable approach for reducing CPCs while improving quality.

Want to learn more about optimizing your social media campaigns? Check out my breakdown of Meta's Advantage+ Shopping Campaigns or see how I achieved similar results with YouTube Ads. If you're interested in how to document these strategies for your team, my article on creating effective SOPs for PPC teams provides a practical framework.