Ad-pocalypse Now: Are Google Ads No Longer Working?
In the dynamic world of digital marketing, Google has long been a titan, reigning supreme over the multibillion-dollar advertising landscape. For years, businesses looked to Google Ads as the engine of growth—the catalyst that could transform a dollar of ad spend into a profitable return. However, according to Steve Chou, e-commerce expert and host of the YouTube channel “MyWifeQuitHerJob,” Google’s golden days are fading, and the cracks in its advertising empire are starting to show.
“Five years ago, a Google ads campaign could turn $1 into $5. Three years ago, it was more like $1 into $3. Today, businesses are losing money faster than ever before,” Chou said in a recent video, outlining a harsh new reality that has rattled the foundation of online advertising.
In the last five years, Chou says, the average cost of advertising for retail brands on Google Ads has risen between 40-50%. And just in the last year, the cost per click (CPC) for retail search has surged an additional 20% for the median advertiser. The escalating costs have not gone unnoticed by major agencies either, who are quietly reeling in ad spend for their clients. “This isn’t another ‘how to fix your Google ads’ video,” Chou emphasized. “This is about understanding the biggest shift in digital marketing that is crippling Google’s search and ad business.”
The Decline of Google’s Ad Effectiveness
So, why are Google Ads increasingly “going to crap,” as Chou puts it? The answer is multifaceted, with several key issues converging to erode the effectiveness of the platform. |Read more|
