How Google Ads Is Ripping You Off – My Expert Reaction

Are rising Google Ads costs hurting your marketing budget? Today, I’m diving into a hot-button issue many advertisers face: why Google Ads CPC costs are skyrocketing and how it feels like "Google Ads is ripping you off." With industry experts like John Moran fueling this discussion, I’ve been asked repeatedly to share my perspective—and today, I’m doing just that.

Why Are Google Ads Costs So High?

Since June, there’s been a surge of complaints about increasing CPC (cost per click) in Google Ads, with many advertisers questioning if they’re getting value for money. This topic gained traction when John Moran released a video highlighting these CPC increases, followed by other appearances and discussions on podcasts like Tier 11 and PPC Mastery. The debate has since taken over LinkedIn, with posts about Google Ads costs going viral.

The Problem with Rising CPC in Google Ads

John Moran’s analogy for CPC pricing is simple: in a room of 100 people, Google knows 10 are ready to buy, and conversion-based bidding means advertisers are paying a premium to target those buyers. While this is a common strategy, the higher CPC is hurting small to medium businesses looking to scale on Google Ads without breaking the bank.

To address this, John has implemented manual CPC bidding with YouTube engagement tracking as his primary conversion metric. He claims this approach has enabled him to scale while keeping CPC costs stable—a strategy that’s worked well for him.

However, while I respect John’s approach, I take a different stance on how advertisers should respond to these rising CPC costs in Google Ads.

👉 Navigating the Future of Google Ads: Embracing Automation and AI

My View on Rising CPC in Google Ads

There are a few key points where John and I agree:

1. Google Ads CPC Costs Can Hurt Your ROI: Google’s algorithms often prioritize their own ad revenue. While Google Ads has been a cornerstone in growing my business for over 15 years, I’m familiar with the frustrations it can bring.

2. Don’t Rely Solely on Google Ads Conversion Data: I think it’s essential for businesses to align Google Ads data with real business revenue and performance metrics. For instance, if Google reports a 20% increase in conversions, I check that against our actual sales to see if that’s truly reflective of our growth.

However, where I diverge from John is in our approach to managing these costs. Instead of resisting Google’s algorithmic changes, I believe advertisers should lean into new tools and ad types that help them stay competitive and adapt to evolving search behaviors.

How I’m Reducing High CPC Costs in Google Ads

Google Ads is always evolving, and so are the types of campaigns that work best. Here’s my strategy to keep CPC stable while scaling Google Ads accounts:

1. Optimize CPC with Stable Campaigns: I focus on maintaining a stable CPC by continuously refining bidding strategies and optimizing campaigns in line with Google’s latest updates.

2. Adopt New Campaign Types Like Performance Max: Rather than limiting myself to manual CPC bidding, I use Performance Max and Demand Gen campaigns to leverage Google’s machine learning for higher-quality leads at lower costs. I also track offline conversions and exclude certain brands to make sure I’m targeting the most profitable audience segments.

3. Expand Through Impression Share and New Traffic: Scaling doesn’t always mean bidding higher. Instead, I increase reach by optimizing for search impression share and expanding my audience to new traffic. This approach helps reduce CPC while reaching a wider audience.

Why You Should Lean into Google’s New Campaign Formats

My recommendation? Embrace Google’s latest tools rather than resisting the changes. While traditional CPC bidding has been effective, Performance Max and conversion-based campaigns are designed to maximize results with Google’s algorithms, and they’re here to stay. Brands and businesses that adapt to these new formats—rather than sticking solely to older methods—are better positioned to succeed as search behavior continues to evolve.

Wrapping Up: Stay Ahead of High CPC Costs with the Right Strategy

High CPC in Google Ads can be daunting, but there are ways to scale your Google Ads campaigns without losing revenue to rising costs. By using new campaign formats, refining your data analysis, and aligning Google Ads data with actual business performance, you can improve your ROI on Google Ads.