It’s not just you - Google Search ads are getting pricier. I am talking about a solid 19% jump in cost-per-click (CPC) and ad spending (up by 17% last quarter, 2023). I see similar trends across all SmartMetrics clients, all markets, and all demographics.
These stats come from Tinuiti’s latest report. They’re looking at Q4 2023, and the numbers are pretty telling. While clicks on ads grew by 8%, the money you pay per click rose even faster, hitting a 9% increase. And it’s not just about the ads – it’s where you see them. Mobile is leading the charge with a 19% increase in spend and a 10% rise in clicks, but CPC also increased by 9%. Desktops and laptops? They’re seeing a 15% higher spend and an increase in CPC, but clicks are kinda lagging, only up by 2%.
Who’s to blame? An increased competition, campaign automation (e.g., performanceMax campaigns), and inflation (joking, but sort of not). Do you think Google doesn’t pass some of those costs to advertisers?
What can you do?
- Spend extra time reviewing your active Google Ads campaigns, and book our Google Ads audit if you need assistance.
- Pause your campaigns until you’re comfortable with your marketing spending and ROAS.
- Passing some of the marketing costs to your consumer might not necessarily be a bad thing - it depends on the value you provide, your audience, timing, and many other factors.
- Focus on mobile-first ads, pay extra attention to the automated bidding strategies and automated campaigns.
- Talk to the professionals - we can help!
- And remember, other channels besides Google might bring you cheaper conversions - it’s always worth testing them.
