Why Google Ads CPCs Keep Increasing (And How to Fix It)
Mar 17, 2025The way people search is evolving, and Google is continuously rolling out updates to adapt. These changes significantly impact Google Ads campaigns, leading to higher cost-per-clicks (CPCs). Some of the key changes include:
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Modifying Google Ads match types to focus on keyword intent rather than exact keyword phrases.
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Introducing new Google Ads campaign types like Performance Max and Demand Gen.
Additionally, more users are turning to AI-driven search tools before making a traditional Google search. As a result, advertisers are facing increasing competition and rising CPCs. Here’s why:
The Future of Search and Its Impact on CPCs
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Users are starting their searches on AI-driven platforms before turning to Google.
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Ads and recommendations are integrated directly into these AI-powered search tools.
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This shift leads to fewer Google searches but increased ad competition.
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With fewer ad placements available, Google Ads CPCs continue to rise due to higher competition.
Since advertising space is becoming more limited while ad volume grows, businesses must adjust their Google Ads strategies to maintain profitability.
How to Combat Rising CPCs: Using the Right Google Ads Campaign Types
For years, businesses could rely on just one or two campaign types, but in 2025 and beyond, success with Google Adsrequires running 3-5 different campaign types effectively.
Primary vs. Secondary Google Ads Campaigns
Understanding when to use different Google Ads campaign types is crucial for optimizing ad spend and advertising performance.
Primary Google Ads Campaigns
These campaigns form the foundation of your Google Ads strategy:
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Google Search Ads (best for lead generation businesses)
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Google Search & Shopping Ads (best for eCommerce brands)
Goals of Primary Campaigns:
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Identify high-converting Google Ads keywords, ad copy, and landing pages.
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Build Google Ads audiences and conversion data.
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Scale Google Search Ads and Google Shopping Ads until CPCs increase disproportionately to budget increases.
Example: If you increase your Google Ads budget by 10% but Google Ads CPCs rise by 20%, you can no longer scale by simply increasing the budget.
Secondary Google Ads Campaigns
These are added when:
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Scaling through primary campaigns is no longer cost-effective due to rising CPCs.
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You need additional Google Ads traffic beyond high-intent searches.
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You want to accelerate audience growth and brand awareness.
Types of Secondary Campaigns:
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Google Display Ads (for remarketing and expanding reach)
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Google Video Ads (to nurture potential customers)
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Performance Max Campaigns (to expand reach efficiently)
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Demand Gen Campaigns (to attract broader audiences)
However, introducing secondary campaigns incorrectly can negatively impact Google Ads performance. Here’s how to do it properly:
How to Implement Additional Google Ads Campaigns Without Hurting Performance
Avoid Overlapping Targeting
When running multiple Google Ads campaigns, ensure that they do not target:
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The same keywords
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The same audiences
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The same geographic locations
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At the same time
Instead, segment your campaigns to target different audience groups.
Example:
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When launching a Performance Max campaign, set it to bid only for new customers and exclude branded traffic.
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If adding a Google Display campaign for remarketing, configure it to target only past website visitors or non-converters.
Leveraging Data for Better Google Ads Performance
For newer campaign types like Performance Max and Demand Gen to work effectively, they must be backed by accurate data.
Key Data Metrics to Track in Google Ads:
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Google Ads Audiences – Utilize first-party data to refine targeting.
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Google Offline Conversions – Essential for lead generation businesses, where conversions often happen offlineafter an initial inquiry. Feeding offline conversion data into Google Ads helps optimize bidding and targeting strategies.
👉The Best Google Ads Strategy for 2025
Final Thoughts
Rising Google Ads CPCs are an inevitable part of digital advertising, but businesses that adapt strategically can still drive profitable results.
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Use multiple campaign types effectively.
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Scale primary campaigns first, then introduce secondary campaigns when needed.
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Ensure you’re collecting and leveraging the right Google Ads data to optimize performance.
By implementing these Google Ads strategies, businesses can maintain efficiency and growth in an increasingly competitive Google Ads landscape.