The Rising Cost of Google Ads: A Digital Marketer’s Take on CPC Chaos and What It Means for UK Businesses
Introduction
Alright, digital marketing friends, let's talk about the elephant in the room: Google Ads is getting pricier by the day. Over the last five years, the cost per click (CPC) has been creeping up, making it harder for businesses—especially the little guys—to stay competitive. But why is this happening? And what does it mean for UK businesses trying to navigate the digital ad jungle?
Let’s break it down, explore the implications, and have a little fun along the way.
The CPC Rollercoaster: A Five-Year Rundown
Let’s take a quick look at how Google Ads CPC has changed in recent years:
- 2019 – £1.35 per click (not too shabby)
- 2020 – £1.55 per click (inflation, anyone?)
- 2021 – £1.70 per click (competition heating up)
- 2022 – £1.90 per click (ouch!)
- 2023 – £2.00+ per click (now we’re really feeling it)
- 2024 – £2.10+ per click (it just won’t stop!)
Why the steady rise? A mix of increased competition, inflation, changes in Google’s bidding algorithm, and demand for premium ad space. Long story short: More businesses are bidding on Google Ads, and Google is more than happy to take their money.
A lot of the changes are due to how Google has changed how the platform works. In the past, you were bidding based on how much you wanted to pay per click, now you’re giving Google Target CPAs and it’s doing what it can to hit them. You’re now essentially bidding on audience signals i.e. Google can judge which users are ready to register/deposit and will push ads to those users if they think they can do it in a way that works to your target cost. Google’s machine learning and algorithms are the most widely used advanced in the business.
The Impact on UK Businesses
With Google Ads getting pricier, businesses need to be extra savvy. Here’s what’s happening:
1. Bigger Budgets, or Bust
The days of small budgets delivering huge results are fading fast. If you want to keep your PPC campaigns profitable, it’s time to think beyond the traditional Google Ads playbook.
2. Skyrocketing Customer Acquisition Costs
When CPC rises, so does the cost of acquiring a customer. That means your ad creative, targeting, and landing pages need to be on point—otherwise, you're just throwing money at Google.
3. More Cutthroat Bidding on Keywords
Certain industries (legal, finance, and healthcare) already have absurdly high CPCs, and with more advertisers hopping in, it’s only getting worse. For example, legal keywords can run upwards of £10-£50 per click!
4. Businesses Diversifying Google for Other Channels
With CPCs going through the roof, many businesses are looking elsewhere:
- SEO – Organic search traffic is free, if you put in the work.
- Social Media Marketing – Platforms like TikTok, Instagram, and LinkedIn offer lower ad costs.
- Email Marketing – Once you’ve got someone on your list, it’s free to reach them.
Should Google Give UK Businesses a Break?
With businesses struggling, should Google lower ad prices? Let’s look at both sides of the argument.
Why Google Should Lower Costs:
- Helps small businesses stay competitive.
- Encourages a more diverse ad market instead of favoring big brands.
- Supports local economies by making advertising more accessible.
Why Google Won’t (and Doesn’t Have To):
- Market forces control CPC – Google isn’t just jacking up prices for fun; demand is driving it.
- It’s their primary revenue stream – Why would they cut prices when businesses keep paying?
- Alternatives exist – Facebook, TikTok, LinkedIn, and SEO are all viable options.
The Betting and Casino Ad Cost Explosion
Now, let’s talk about the real high-stakes advertisers: the gambling industry. If you think regular CPCs are high, wait until you see the numbers for casino and sports betting keywords.
USA Casino & Sports Betting CPC Trends
- The average CPC for gambling-related terms can range from £30 to £75 per click in the UK (yes, really!).
- Casino brands are throwing serious money at ads, making it one of the most expensive digital ad sectors.
- Sweepstakes ads are also on the rise as more states legalize online gambling.
UK Casino & Sports Betting CPC Trends
- Average CPCs range from £2 to £10, depending on the keyword.
- Sports betting sees higher fluctuations based on seasonal events (think Premier League and Cheltenham Festival).
- Regulations make advertising tricky, meaning brands have to be super strategic with their ad spend.
Why Are CPCs So High?
- Massive customer lifetime value (CLV) – A single customer can be worth thousands to a casino.
- Regulatory hurdles – More restrictions mean fewer ad slots, driving up competition.
- Big brands dominating – Established names outbid smaller competitors, making it a pay-to-play space.
Is Google Killing Local Newspapers and Small Businesses?
Here’s a hot take: Is Google Ads making it harder for local businesses and newspapers to survive?
Impact on Local Newspapers
- Print advertising revenue is drying up because businesses prefer digital.
- Local papers struggle to compete with Google and Facebook for ad budgets.
- The rise of online news means local papers have to shift to digital, which isn’t always sustainable.
Impact on Local Businesses
- Small businesses can’t afford to compete with national brands for prime keywords.
- CPC increases force some to abandon Google Ads entirely.
- Less visibility means local businesses struggle to attract foot traffic.
Google’s dominance in the ad market is undeniable, but is it technically a monopoly? That’s debatable. While other ad platforms exist, Google owns 85%+ of search traffic, making it the go-to for advertisers.
What’s Next for UK Businesses?
So, what’s the takeaway from all of this? Google Ads is still an incredible tool, but it’s no longer the cheap and easy win it once was. Businesses need to be smarter, leaner, and more strategic with their digital marketing.
Here’s what to do next: ✅ Optimize your landing pages to convert more clicks into sales. ✅ Experiment with alternative platforms like TikTok, LinkedIn, and influencer marketing. ✅ Invest in SEO to reduce reliance on paid ads. ✅ Keep an eye on your ad spend ROI—if Google Ads isn’t working, pivot!
Final Thoughts
Google Ads costs are rising, but businesses that adapt can still find success. Whether you’re running a local coffee shop or a high-stakes sportsbook, smart advertising strategies will always win over blindly throwing money at Google.
Always start by using your own data to judge what you can pay, where your data suggests you’re getting more profitability.
What do you think—should Google cut businesses a break, or is it just the nature of digital marketing? Let’s discuss!