Image of rising costs, Greedy Google: CPC Increase Confirmed

Greedy Google: CPC Increase Confirmed

Google’s Global search engine recently sent shock waves through the digital marketing community. Is it abnormal? Certainly not, but sneaky nonetheless.

Google has announced that they have quietly increased the cost per click (CPC) price to 10%. This is to meet their revenue targets. 

 

What is CPC?

CPC, or cost per click, is a well-known digital marketing metric that is used within PPC (pay per click) advertising campaigns. It measures how much an advertiser will spend on each click received on their ads.

During the setup of a PPC campaign, advertisers will select the specific keywords they would like to bid on. This means their advertisements would trigger each time this keyword is used to search on Google. Google will then charge the advertiser a certain amount per click on your ad. 

 

What is Google doing to CPC?

Google has announced that the Google CPC price has been quietly increased up to 10% without informing any advertisers. This has sparked major controversy as advertisers have left feeling blindsided by Google’s greed. 

So, what is Google doing when it comes to CPC?

Well, they recently announced that the keywords and ad campaigns have increased their CPC to 10%. They have initiated this change without informing advertisers. This has sparked significant controversy within the industry as advertisers have been left blindsided by Google’s greed.

 

Why Are They Raising the Prices of CPC?

According to Google Ads Executive Jerry Dischler at the federal antitrust trial, Google has been raising the CPC price to meet its revenue goals. There has been evidence to show that revenue goals have been slipping away from Google since 2019. This is according to an email from Google’s Chief Financial Officer: 

“If we don’t meet quota for the second quarter in a row…we will get punished pretty badly in the market. I care more about revenue than the average person.” A quick Google search will show you the revenue Google brings in. For example, their ads revenue was $59 billion in Q4 2022.

 

How Does This Affect Your Google Ads Campaigns?

The Google CPC Pirce increase has affected multiple industries. As a result, advertisers operating on a tight budget may see a significant drop in conversion rate. With the increasing CPC, advertisers will likely see no choice but to increase their ad budget. 

Let’s add some context to this:

Say $100 of ad spend returned 10 conversions. Because of the Google CPC price increases, that same $100 will no longer return the same conversion rate. This will lead to a significant drop-off in ad performance for many advertisers. 

 

Is Google Being Sneaky, Or Is This Justified? 

The consensus from marketers is that Google CPC prices have been increasing steadily, with little repercussion seen by the naked eye. However, looking into this and seeing the facts in black and white has caused a lot of controversy. 

When you combine the factors, Google has wholly left advertisers in the dark. This is a sneaky move from Google, and it’s not painting the search engine in the best light. This is further confirmed when you consider that Google is already under investigation. This is for using underhand tactics to retain their title as the world’s leading search engine. 

At ROAR, our philosophy is centred around doing right by our clients. Amid this Google controversy, having an honest, straight-talking agency that does what it says it can do might mean all the difference for your PPC campaigns. 

 


 

Get in touch today and set up a free exploratory call with a member of PPC team today!

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