r/googleads • u/Hop2thetop_Dont_Stop • 13h ago
Bid Strategy The reason why PPC is so expensive
Here's something a lot of folks do not understand about PPC.
I think most people get that PPC is more expensive now than ever. But as always, there are ways to optimize around that and still get a strong return.
But WHY is it so expensive?
Is it because more people are using Google?
Sure, maybe.

If we look at the way PPC used to look:
You had 10+ PPC placements at any given time to click on.
These days, the PPC itself is often narrowed down to as little as 1-3 placements.
Google has CAREFULLY re-engineered the results over many, many years of testing, to maximize their profits.
And part of that was releasing LSA (local service ads), starting in 2015.
As of 2015, certain markets you now had Google pinning Google Ads placements in direct competition with their own LSA product. So now, there is less real estate for businesses such as law firms, HVAC companies, and others, compared to pre-2015.
Fewer PPC placements, yet Google's revenue kept increasing by a huge clip every year.
Next, enter "SMART BIDDING".
Since there were fewer placements available, Google had to figure out a way to supplement the "legit" PPC placements, with lower quality/junk placements that would then be wrapped into smart bidding, and later, AI driven products (Pmax, AI Max).
When you look at the timeline of product releases, this is all by design.
I'm not saying that Google is BAD, all the time, or ALL of their traffic is JUNK. By they are a multi billion dollar, for profit corporation, and anyone who believes these "upgrades" are in the interest of advertisers are probably smoking something good.
Where this becomes completely obvious that Google loves to money grab through "product upgrades":
1/ Performance Max - Now years later, only now does Google start rolling back some of the junk because they all but completely destroyed their credibility with this product.
2/ Account "Warnings" that you aren't bidding on enough broad match keywords
3/ Similar "Warnings" that you don't have search partners turned on
4/ More "Warnings" about not using enhanced conversions, which in turn would give google all of your customer's personal information. This recommendation was supposed to be because 3rd party cookies were going away, and when that decision was over turned, Google still persisted that they needed enhanced conversions turned on across the board. Why? Because they do not have the depth of 1st party data that Facebook has and this is the only way to get it.
5/ Extremely aggressive, outsourced "reps" that are really sales robots that read off scripts and are judged on how many features they get you to opt into
6/ Let's not forget the recent August 17th Bid "Upgrades" that effectively brought minimum CPA's up across the board for an infinite number of advertisers, further lining Google's pockets.
Now, there are some GREAT Google reps that work stateside and will actually provide real recommendations, and support. I have to admit this because it's true and I'm literally working with 2 of the best Google reps right now that I've ever worked with in 18+ years. Google MIGHT be finally listening to the backlash from agencies.
What do you think? Is Google on the side of small business? Or do they hide low quality traffic under various disguises in order to keep growing year over year?
