Google is a business and not a charity, so no doubt that PPC costs will only go up. While there are multiple factors influencing that increase, the big ones are inflation and Google’s strategy.
In the article below, you can see what our Google specialists found out and our honest advice for your future marketing budget investment.
Inflation and PPC costs
Yes, inflation not only raises everyday goods’ prices. PPC costs are affected by inflation. The purchasing power of money falls severely over time. Just look at the numbers below!
Yes, you see it right. Each time we experience economic recession, inflation rates jump up, and the purchasing power jumps down.
UK Example*: In January 2025, you had to pay £124.75 for goods and services you could buy in January 2020 for £100.
US Example: The $100 worth of goods and services from 2020 would now (February 2025) cost $123.14. The cumulative rate of inflation over 5 years is 23.14%
This is how inflation decreases purchasing power and makes companies’ marketing budgets crumble**.
But that’s only part of the story…
Google’s strategy and PPC costs
In 2024, the Cost Per Click (CPC) has been strongly influenced by growing competition. As Google Ads is a bidding game, the more competitors bid for the same keywords, especially in popular industries, the faster PPC cost will rise. It is a simple market rule of supply and demand.
And now we have Temu, Amazon, and similar giant international corporations, platforms where you can buy virtually anything you can think of pressing on our market. So, how can you win your portion of the market and get visible online?
There are several steps you can take to minimise the impact of raising PPC costs. You can improve your landing page or create a new one for better conversion rates, remove low-performing keywords and add negative keywords to filter out irrelevant traffic, to name just a few.
The key is a strategy – Do not go blindly invest in Google Ads
This game requires skills and experience. Instead of burning your marketing budget in a DIY project, get a professional pay-per-click specialist who will use your historical data and statistics from the market to carefully tailor your campaigns.
The fight for each click will only get harder, so make sure you have the right team in place to optimise your budget.
So will Google Ads still be worth it in 2025?
Absolutely. Google Ads are worth it because they provide a cost-effective way for businesses to reach a virtually unlimited, targeted audience. They’re extremely flexible, and you can start, pause, adjust your bids or stop at any time.
Is it good for all kinds of business?
No!
And we will say that loud – No! Not all businesses will benefit from Google Ads. And that is why Relton Digital, offers free Keyword Forecasting. They take the guesswork out because they believe in creating and delivering success. They will never take on board a client if they don’t believe they can deliver success.
What if your marketing budget for 2025 is too tight?
The year 2025 should be a year of increased retention when they concentrate on client loyalty, engagement, automation, and remarketing. A happy client is coming back and doing so without additional PPC cost. So make sure you spend your budget wisely.
What they mean by this is that they have clients who spend 1/5 of what their competitors spend on Google Ads yet achieve higher Impression shares and great results. They know this because we use PPC tools that tell us what your competitors are up to.
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What else do they know?
They know that Google Account Managers are not paid by Google but are outsourced 3rd parties. They also know that they earn a commission when they get a Google Ads Account to spend more money with them.
Let us say that again: Google is a business like all others and wants to maximise its clients ’ spending and lifetime value (LTV). Stay with them over a prolonged period, and it will reward you for doing so, but do it on your terms and in your business’s and budget’s best interest.
What’s your take on rising PPC costs, is it a smart strategy or sinking ship? Drop your thoughts in the comments below!
Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1
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