Has Google Ads Become More Expensive for You in 2022?

Google Ads have been a staple of digital marketing since 1998, continuously evolving to meet the changing needs of businesses. But with the evolution of technology and increasing competition, one question often arises: have Google Ads become more expensive in 2022?

How Google Advertisements Work

To effectively run an ad campaign, you first create a 'campaign' or a group of ads. You choose keywords relevant to your content and bid on them to indicate how much you're willing to pay per click. If a user clicks on your ad, you're charged based on your bid. However, it's important to note that you only pay for clicks that result in conversions, meaning only those that lead to actual sales or desired actions.

If you prefer a budget-friendly option, you can use Google's free 'Adsense' program. While it does allow you to earn money from other websites displaying your ads, it doesn't offer the option to target specific audiences, which is crucial for reaching potential customers interested in your products.

Understanding CPC Rates and Advertising Costs

According to Google, the average cost per click (CPC) in 2017 was 1.22. This means advertisers were paying an average of 1.22 for each click. However, as technology and competition evolved, the average price of a search query increased slightly. For instance, in 2016, the average cost was 0.01, while in 2017 it rose to 0.02. Consequently, if you were paying 1.22 per click in 2017, you would expect to pay around 0.24 per click in 2022 for similar campaigns.

For those looking to reduce advertising costs, Bing Ads could be a viable option. Microsoft reported an average CPC rate of 0.45 in 2017, with a significantly lower rise in keyword prices but a decrease in the average price of searches. Based on this data, if you were spending 0.45 per click in 2017, you could expect to spend 0.23 per click in 2022.

Expected Savings on Advertising Costs

According to Google, the average cost of running an AdWords campaign in 2017 was $9.90 per day. However, a similar campaign on Bing Ads would only cost $3.50 per day, based on the same data. While these figures are not precise and many factors can influence the actual cost, including the number of impressions and the quality of traffic, the data suggests that Google Ads may not be as cost-effective as they were a few years ago.

Conclusion

In conclusion, while Google Ads may have become more expensive in 2022, there are other options available that can help you save money on advertising costs. By understanding the dynamics of CPC rates and considering alternatives like Bing Ads, businesses can make more informed decisions about their advertising strategies.