Why is Google Ads (Google AdWords) so expensive?

Short answer: NO.

Long answer: It really depends. Google Ads can be expensive but can for sure be highly profitable. Start with a good strategy, track all the goals that help you increase your business and mix some PPC Automation with smart optimization and you’ll be quite fine. Google Ads, by definition, can help you target the right people at the right time, when they actively searching for your products or services, so all you have to do is find ways to target those people and keep the costs under control.

But, from my experience, Google (and other Pay-Per-Click advertising platforms, such as Facebook) keep getting slightly expensive each year, but this is normal:

• Google Ads, previously Google AdWords, is the main income-source for the giant that is Google. More than 80% of its revenue comes from Ads (AdWords). Google, like any other major company, has shareholders, employees, multiple locations around the world, etc. It has a lot of increasing costs and needs to generate profit to keep the shareholders satisfied ?
• Each and every year, more and more businesses start advertising on Google Ads. This means new competition. Google Ads is a competitive environment, it will award the advertiser with the high-quality, relevant ads. New competition means increasing costs for old advertisers.
• Google Ads constantly keep innovating, keeps adding new & smart targeting methods. For targeting a specific audience, only the right people that eventually will become your customers, you cannot pay the same as targeting a broad audience.

Start by looking at the benchmarks – WordStream provides information for CTR, CPC, CPA and other important KPIs. Compare those numbers with the averages you get in your own accounts. If you find some anomalies, look further, analyze deeper.

I work at a digital marketing agency and manage Google Ads campaigns for more than 150 clients from UAE & Middle East. I’ve found average CPCs this year that are well beyond industries benchmarks, but the value that these keywords bring to my clients makes it worth pursuing them. So even though the costs are high, the profits are higher.