Google Ads Shows Year Over Year Click Cost Increases

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Search Engine Land, one of the pay per click industry’s top online magazines, has just published its statistical data analysis for Google Ads performance. Read the full article online. 

They identified the following information for 2023 vs. 2024. 

Search campaigns:
ROAS up 2% YoY
CPA down 3% YoY
CPC up 22% YoY
Conversion rate up 21% YoY

Performance Max campaigns:
ROAS: Up 1% YoY, from 609.77% in Q3 2023 to 616.36% in Q3 2024
CPA: Up 8% YoY, from $13.92 in Q3 2023 to $15.15 in Q3 2024
CPC: Up 6% YoY, from $0.50 in Q3 2023 to $0.53 in Q3 2024
Conversion Rate: Down 3% YoY, from 3.56% in Q3 2023 to 3.47% in Q3 2024

Shopping campaigns with PMax: 
ROAS up 4% YoY 
CPA down 15% YoY 
CPC down 10% YoY 
Conversion rate up 5% YoY 

What we find is that while most of our advertisers saw modest year-over-year gains in return on ad spend (ROAS) and conversion rates, the rising cost per click cost cut into those improvements. 

For some clients knowing that the cost per click has increased 22% from 2023 to 2024 is not news to them, but to others, seeing the actual data broken down my campaign type may be illuminating.

Although no one likes to have to increase their Google Ads spend budget just to stay competitive, the data points out that ad spend budgets should be reviewed regularly to keep your business competitive in the Google Ads auction. 

For existing clients, we are offering a free analysis in December to plan a 2025 Google Ads spend budget by month; allowing you to compete effectively in this changing landscape. Please let us know to add you to our 2025 budget planning session by December 10th  and receive a free Google Ads budget plan by month.  

If you are not a client yet, you can get a two year analysis and a 2025 Google Ads spend budget by month for $250. Please contact us by December 15th with payment.

Google Affirms Support for Third-Party Cookies in Chrome: What It Means for Your Ads

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Google has recently announced that it will not be depreciating third-party cookies in Chrome, which is a significant update for marketers and advertisers. This decision ensures that third-party cookies will continue to play a crucial role in audience targeting and remarketing strategies within Google Ads.

What Does This Mean for Audience Marketing?

  • Remarketing Ads Remain Effective:

With third-party cookies remaining active, marketers can continue to serve remarketing ads to users who have not opted out of targeted advertising. This means that if a visitor engages with your website and does not refuse targeted marketing, you can still reach them with customized ads that encourage further engagement or conversions.

  • Similar Audiences May be Back:

Google’s support for third-party cookies will likely reinstate the use of similar audiences for users who have not opted out of targeting marketing. This feature uses data collected from third-party cookies to find new potential customers who share characteristics with your current audience, thus expanding your reach effectively.

The Policy Update on Third-Party Cookies

Google’s decision aligns with the growing need to provide users with more control over their privacy and data. Now, with the upcoming feature in Chrome, users will have the option to make an informed decision regarding their tracking preferences across the web. This change primarily affects users who opt out of tracking, ensuring those who consent can still benefit from personalized ad experiences.

Impact on Marketing Strategies

  • Enhanced Personalization:

Third-party cookies enable highly personalized ad experiences. By continuing to access this data, advertisers can create compelling and relevant ads that resonate with their target audience.

  • Improved Campaign Performance:

The ability to serve remarketing ads and leverage similar audience data enhances campaign performance. These strategies typically result in higher engagement, better conversion rates, and increased return on investment (ROI).

  • Adaptation to Regulatory Changes:

With various states requiring websites to allow visitors to opt out of tracking, this policy ensures compliant businesses can still engage with users who consent to targeted ads.

Conclusion

Google’s decision to maintain third-party cookies in Chrome represents a win for advertisers relying on audience targeting and remarketing strategies. It enables businesses to continue delivering personalized ad experiences while adhering to privacy regulations. For website owners and advertising agencies, this update underscores the importance of staying informed about user preferences and adapting strategies accordingly.

Stay ahead of the curve by leveraging these insights in your Google Ads campaigns. If you need expert guidance, don’t hesitate to contact our team for top-notch Google Ads management services.

 

How to Lower Your Google Ads Cost Per Conversion

Get Your Advertising on Target

In an era where digital visibility is paramount, Google Ads serves as a pivotal tool for advertisers aiming to capture the right audience. However, a common hurdle that many face, from seasoned marketers to DIY enthusiasts, is managing and reducing the cost per conversion. At McCord Web Services, we understand this challenge intimately and have developed strategies to help you get the most out of your Google Ads campaigns without breaking the bank.

Utilize Google’s Machine Learning for Bidding

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McCord Web Services is a Google Partner

One of the most effective strategies to lower your cost per conversion revolves around leveraging Google Ads’ advanced bidding algorithms. Powered by machine learning, these algorithms can optimize your bids in real-time, targeting users who are most likely to convert based on historical data and user behavior.

By setting a target cost per acquisition (CPA) or return on ad spend (ROAS), you’re essentially telling Google your desired outcome, allowing the system to adjust your bids to meet these objectives. This method ensures that your budget is spent efficiently, focusing on leads that are more likely to result in conversions.

The Power of Negative Keywords

Another crucial element in enhancing the efficacy of your Google Ads campaigns and reducing unnecessary expenditure is the judicious use of negative keywords. Negative keywords help refine your ad targeting by excluding search terms that aren’t relevant to your products or services, preventing your ads from being shown to uninterested users.

This targeting refinement means you’re not wasting money on clicks that aren’t going to convert, ultimately lowering your cost per conversion. Regularly review search term reports to identify irrelevant terms that trigger your ads and add them as negative keywords across your campaigns.

Broad Match Keywords with Caution

Broad match keywords can be a double-edged sword. While they increase your ad’s visibility by showing your ad on a wide range of user queries related to your keyword, they can also lead to irrelevant traffic, if not used judiciously. The key is to balance broad match keywords with a robust list of negative keywords to sculpt your audience effectively. This approach ensures that you’re casting a wide net but still catching the right kind of traffic that’s more likely to convert.

In conclusion, managing your Google Ads cost per conversion effectively involves a strategic blend of leveraging Google’s AI-powered bidding algorithms, refining your targeting with negative keywords, and careful use of broad match keywords. By focusing on these areas, advertisers and DIY marketers can optimize their campaigns for better conversion rates and lower costs. Remember, success in Google Ads doesn’t just come from big budgets but from smarter, data-driven decisions.