CPC Inflation: How Fast Are Google Ads Costs Rising?
Ever notice how your morning coffee keeps getting more expensive, but you keep buying it anyway? That's exactly what's happening with your Google Ads...
3 min read
Writing Team
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Apr 21, 2025 4:09:15 PM
When was the last time you checked how many times your Google Ads appear on a single search results page? If you haven't looked lately, you might be in for a surprise. Google has quietly eliminated one of its longest-standing advertising restrictions, allowing the same advertiser to appear in both top and bottom ad positions on the same search results page. This change fundamentally alters the competitive landscape of Google's advertising ecosystem.
Google recently announced it will now allow relevant Search ads from advertisers who appeared in top positions to also participate in the bottom ads auction. This represents a significant shift from Google's traditional approach, which generally restricted advertisers to a single ad location per page.
To help reduce this friction and improve ad relevance lower down the page, we will now allow relevant Search ads from advertisers who showed amongst top ads to also participate in the bottom ads auction. This means a user scrolling lower down the page might see a highly relevant ad from the same advertiser, but not necessarily the exact same content they saw earlier.
We tested this for several months and found that allowing advertisers who showed amongst top ads to also compete in the bottom auction increased rates of highly relevant ads by about 10%1 and increased bottom ad conversions by about 14%2, improving both the user experience and advertiser value lower down the page.
This change follows Google's earlier repositioning of top ads, which began about a year ago when Google started mixing ads in various organic positions throughout the search results.
Industry insiders might immediately wonder about Google's longstanding prohibition against "double serving" - the practice of showing multiple ads from the same advertiser on a single results page. Our team at Hire a Writer closely follows these changes in digital customer service strategies and how they impact marketing performance.
Google has addressed the apparent contradiction by updating its unfair advantage policy. The company added the words "in a single ad location" as an exception to its double serving prohibition last March. Under this redefinition, the same advertiser appearing in both top and bottom positions no longer constitutes a double serving.
Google explicitly addresses this in their FAQ:
"The unfair advantage policy for Search ads applies to ads that compete with each other to show in a single ad location and we recently updated our language to make this clearer. With this change, we are allowing advertisers who show up in the top ad location to also be eligible for ad locations further down the page. However, within a single ad location (either top or bottom), we will continue to apply and enforce the existing policy."
Google emphasizes that advertisers will never bid against themselves, and that the specific ad content shown may differ between top and bottom placements to "best suit the context."
For advertisers concerned about understanding economies of scale in their digital marketing, this change creates new opportunities to leverage scale advantages for improved marketing ROI and cost efficiency.
The change will likely impact key performance metrics for many advertisers. Google recommends segmenting your metrics by "Top vs. other" to understand performance differences between ad locations. The search terms report will continue to show query-level clicks from both top and bottom positions.
Since this update provides more opportunities for relevant Search ads to be seen, Google advises ensuring your keywords, ad copy, and landing pages are well-themed with user search intent. Advertisers will likely see higher conversion volume at current targets, making this an excellent time to use bid simulator tools to explore potential performance changes.
For those focused on customer lifetime value prediction, this additional exposure could meaningfully impact customer acquisition costs and conversion rates, potentially altering your long-term customer value calculations.
This policy change creates both opportunities and challenges for advertisers:
Google's new approach aligns with broader industry trends toward sophisticated performance marketing, where every pixel of SERP real estate offers unique opportunities for advertiser messaging and conversion optimization.
While reactions to this change are mixed, the reality is that Google has implemented it after months of testing showed positive results. Smart advertisers will adapt quickly by:
As Google continues to evolve its advertising platform, staying ahead requires both technical expertise and strategic insight. At Hire a Writer, our Full Service Digital Marketing team specializes in navigating these changes to maximize your advertising ROI.
Contact us today to develop a growth marketing strategy that turns Google's policy changes into competitive advantages for your business.
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