CPC continues to grow! Ease your budget by optimizing your Google Ads investments

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Due to long-term inflation, which is plaguing both producers and consumers, merchants are forced to expect lower profits due to constantly increasing wages and material prices. In order to remain competitive, companies invest money in advertising, but these expenses are also constantly rising.

According to Google , the cost per click (CPC) increased by 4 to 6% in the first three quarters of 2024 compared to the same period last year.

Advertisers could, of course, also increase their cash app data prices in connection with the higher CPC price, but inflation is already starting to put consumers in a difficult situation and such a measure could mean a loss of customers.

So what can you do to keep your marketing budget from being blown away by your cost-per-click (CPC)? Use the simple tactic of CPC caps. It will offset your increasing advertising costs without unnecessarily burdening the consumer.

How does Google determine CPC rates?
Some advertisers using Google Ads' Smart Bidding tool for PPC campaigns leave all the steps to artificial intelligence, which is not entirely good.

For example, we have a company targeting a four-fold ROAS (return on advertising investment) with an average AOV (order value) of CZK 5,000. If the artificial intelligence 100% "knows" that a click will result in a conversion, Google can charge up to CZK 1,250 for it.