In Recent Years, CPC Rates in Google Ads Have Steadily Increased

Ongoing antitrust cases by the U.S. Department of Justice (DOJ) against Google highlight some concerning practices that may be contributing to this trend. These cases include:

·      Inflated Prices – Google allegedly manipulates ad auctions, driving up prices, impacting both advertisers and clients.

·      Dishonest Practices – Google allegedly misrepresents how its Randomized Generalized Second-Price system works, causing confusion about auction quality improvements.

· Reduced Visibility – Restrictions on search term visibility mean that advertisers potentially pay more for less visibility, complicating the advertising landscape.

How Can You Regain a Sense of Control?

Understanding the Changing Landscape

It is important to understand the implications of Google’s actions, which not only lead to increasing CPC rates but also raise concerns in the following areas:

·      Trust Issues – There are significant concerns about whether Google can be trusted as an advertising platform in the future, affecting advertisers’ confidence in its black box bidding models, campaigns, and recommendations.

·      Monopoly Impact – Google is the biggest player in the search game, and until a bigger competitor emerges, we’ll be “Googling” for some time.

·      Enforcing Transparency – Without transparency and fairness in practice (or in auctions), creating a sustainable and ethical advertising ecosystem is challenging but crucial.

Changes You Can Make Today

To tackle these challenges and keep up with the evolving advertising landscape, advertisers can:

·      Diversify – Try using various marketing channels and spreading your media budget. Don’t rely solely on Google Ads – experiment with other platforms as part of a robust marketing mix.

·      Focus on Your Audience – Use first-party data and Customer Match to enhance Google Performance Max campaigns and potentially reduce CPC through increased relevance.

· CPC Limits – Utilize platform features like portfolio strategies to set maximum and minimum CPC bids while using smart bidding.

And manual CPC bidding is always available – if you have the time…

Need help with Google Ads? Feel free to contact us, we’ll be happy to help.