Why is it worth increasing your Google Ads budgets right now?

Increase in Search Volume and CPC on Google Search Network

If in 2020 you paid around 2 PLN per click, today that amount could be over 3 PLN. This, in turn, translates to up to 35% less traffic on your website with the same budget!

The pandemic accelerated online shopping, forcing many companies that previously relied heavily on offline sales to shift their activities online. As a result, traffic increased, and the average CPC (cost per click) decreased.

Now, the situation seems to have stabilized—user-generated queries aren’t growing as dynamically, but the number of new companies appearing online hasn’t slowed down. This creates an environment where it’s increasingly difficult for businesses to compete for the same users.

The average CPC is on an upward trend, and by 2023, we’ve seen an increase of up to 30% (this percentage varies by industry). Additionally, there’s been a significant shift towards automated optimization strategies, which has also contributed to rising click costs.

Rising Competitor Spending and New Players in the Advertising Network

Year after year, I’ve noticed that brands are increasing their marketing budgets to gain visibility, compete for users, and ultimately outpace their competition. The difficult market situation is also exacerbated by new players—companies with similar profiles trying to attract the same customers.

The average budget increase ranges from 10% to as much as 100%, depending on the competitiveness of the industry.

Building a strong brand based on values is one way to navigate this situation. However, this needs to be a strategic decision, not left to chance. Failing to respond to these changes not only decreases your ad visibility but also causes you to get lost among the many options users see.

Banner Blindness or advertising blindness

Your users are increasingly affected by „banner blindness,” where they pay less and less attention to what you’re trying to present to them.

We are bombarded with hundreds or even thousands of pieces of information daily while browsing content we find valuable. This negatively impacts the retention of advertising messages. To maintain similar awareness levels, you now need to increase the number of impressions for unique users to reach them effectively.

Last year, the number of impressions per unique user increased to over 70—meaning you need to show your ad that many times for the message to stick. This leads to a 3-7% annual increase in marketing budgets for display ads.

What Else Can You Do?

1. Focus on Ad Quality

Ensuring the quality of your ads is fundamental to effective marketing efforts. Pay attention to ad relevance for your target audience and the funnel stage where the user sees them. The quality of the materials (resolution, aesthetics, content alignment) is also crucial. This will help you reach your target group more effectively and achieve better marketing metrics (e.g., lower cost per click, conversion, or user acquisition). This, in turn, allows for better budget optimization and provides a competitive edge.

2. Exclude Negative Targeting Aspects

Nothing ruins your stats like spending budget on ads that appear where no one wants to see them. Therefore, another essential aspect of safeguarding your marketing budget is excluding low-efficiency areas. Whether you do this through geographic, demographic, or even specific site exclusions, don’t rely 100% on automation—algorithms will always aim to maximize what you target, but that’s not their only priority. It’s worth verifying.

3. Data

Analysis and decision-making based on data are the foundation of effective actions. Without it, you can’t make informed business decisions or enrich algorithms. Recently, in the cookieless era, this aspect has gained even more significance. Ensure you have all methods and solutions in place to collect data. Pay special attention to tools like Google Consent Mode, offline/CRM data imports, Server-Side Tagging, and Enhanced Conversions.

4. Leverage Solutions Beyond Google (CSS)

Don’t rely solely on Google. For e-commerce stores, one interesting option is using external CSS (Comparison Shopping Services) outside the Google system.

With this approach, you don’t need to make any changes to your standard product campaigns, except for saving on CPC! Moving your product feed to a non-Google service can lead to savings—up to 25% lower average CPC.

Key Takeaways

• Google Ads costs are continuously rising, presenting challenges for marketers. The average CPC has increased by up to 30% by 2023, making it harder to reach users effectively with a stable budget.
• Increased competitor spending and new market players, make the battle for user attention more intense. Brands must raise their ad budgets to remain visible and compete effectively.
• Banner blindness means users increasingly ignore ads, necessitating higher ad frequencies and leading to a 3-7% annual increase in display ad costs.
• Effective marketing requires attention to ad quality and campaign optimization. Aligning content with your target audience and excluding negative targeting aspects are crucial for success.
• Data analysis is key to informed decision-making. In the era of privacy changes, tools like Google Consent Mode and CRM data imports are essential for effective ad personalization.
• Exploring alternatives outside Google Ads, such as external CSS for e-commerce, can reduce CPC costs by up to 25%, maintaining campaign efficiency.