Why Have PPC Costs Been Slowly Rising?

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Pay Per Click (PPC) is a way of advertising where you pay for every click you receive. There are several types of ads although most of them run through Google ads. Over the years there have been PPC inflation even if other variables seem to be the same. Certain factors have contributed to this rise.

Despite your location, i.e. Birmingham, some things can bring your cost down, like using a professional PPC agency Birmingham that has sophisticated hardware and large amounts of customer data. Here are some factors that could be driving your PPC up.

Why Have PPC Costs Been Slowly Rising?

1. Competition

Competition

Google ads, for the most part, usually behave like an auction. Parties enter the auction and the more participants the more the number of bids. Google ads and Facebook Ads have been around for the longest time yet, users seem to be increasing by the day. In order to find out the progress of your competitors, you can check your auction insights. This way you can know the number of people you are competing against for your chosen keywords.

2. Ads are becoming bigger

Ads are Becoming Bigger

The top space on the advertising pages has been reduced. This is because many extensions and other components of Ads rankings now rise to the top. Expended text Ads have grown further and now have great description length and additional headlines, leading to increasing costs.

3. Reduced space for ads to compete

In the previous years, the ad space on the first page was a bit larger. Over the years Google has made several changes on their search engine results page. There is more space for the guys that appear at the top of the page, those that don’t appear at the top don’t get the same privilege though.

Google ads are also so prominent that they push regular text ads to the bottom of the page and essentially male drive through rates to reduce. For this reason, Google has decided to do away with the average positions in order to make room for absolute top and top positions. All the above changes: smaller ads, doing away with the right-hand column, have made it very difficult for people to get the top positions. If you combine the reduced space and large ads and increased number of competitors the cost of PPC increases significantly.

4. Exact matches are not exact anymore

Google loves machine learning compared to exact matches which aren’t very popular. If you go through your exact match keyword and notice some clear changes then you should check your search query reports. They could be targeting more than before. Your quality score could be affected and in turn, raise your PPC.

5. Removal of enhanced PPC limits

Removal of Enhanced PPC Limits

Enhanced PPC is a commonly used bidding strategy that provides Google with algorithms that increase bids once it spots an opportunity. This boosts conversion rates. This simply means that once Google notices that your bid is too low, they will increase your bid. In the past, there was a safety net to prevent Google from raising bids, but that changed

Conclusion

PPC inflation is here to stay, just deal with it by being calm and avoiding knee jerk changes. Here we have discussed the cost of PPC and why your business needs PPC, you can optimize your ad campaigns in your budget.