Revelations from the DOJ antitrust trial exposed how Google set minimum bid floor limits on selective industries, manipulating the bidding market to raise prices as needed. This practice undermines the very concept of a competitive bidding market, allowing Google to continually increase their ad revenues. This is evident in their record profits from Google Ads, which have been steadily climbing. In Q1 2024 alone, Google Ads generated $58.1 billion in revenue, showcasing their ability to extract maximum revenue from advertisers regardless of market fairness .
As someone who has helped run over 100 Google ad accounts for small businesses since 2011, I have witnessed firsthand the yearly changes that have moved Google away from being a trusted PPC provider. I’ve been saying this for years, working with small and larger companies in running Google Ads accounts. From $200 a month local business accounts to running a $90,000 a month Google Ads account, I have been in the driver’s seat of deploying Google Ads strategies and PPC campaigns. I always tell businesses, “Google is not your friend” and they are the devil we must deal with.
One issue I’ve observed and suspected for years is their practice of industry-specific price hikes. Last fall, it was disclosed that they had established minimum bid baselines for each industry, enabling them to systematically increase revenues by adjusting and targeting specific sectors with percentage increases. Imagine having the capability to examine an industry and decide to implement a 1% increase across the board when you feel like it. Yes, it is infuriating and that is f@cked up.
Here, eleven advertisers share their insights on why trust in Google has plummeted.
Manipulation and Deceptive Practices
Sarah Stemen (Paid Search Specialist and Founder): “Their willingness to rewrite help desk documents is shocking. It seems like Google is trying to hide the mechanics of a potential first-price auction rather than ensuring a truly fair second-price system.”
Boris Beceric (Google Ads Consultant and Coach): “The only one ‘benefitting’ from randomization is Google. Google is a monopoly that’s raising prices without informing advertisers.”
Dids Reeve (Freelance Paid Media Specialist): “The document reads like randomization is code for ‘we can deviate from the usual auction algorithm to make more money’. Google seems to be covering up practices that would otherwise damage their reputation.”
Chris Ridley (Paid Media Manager, Evoluted): “The latest news of Google randomizing the top two ad positions in the hope advertisers will raise their bids is a sign that Google is willing to rewrite the rulebook for advertising on their platform.”
Robert Brady (Founder and PPC Expert): “Exact match bears the name ‘exact,’ but the behavior of the match type is far from exact. The term ‘randomization’ is used to deflect scrutiny while favoring Google.”
Amy Hebdon (Google Ads Conversion Expert): “With RGSP, Google has gaslit advertisers with disingenuous explanations, trying to convince us that this lack of transparency is for our benefit.”
Google’s Prioritization of Profit Over Fairness
Jyll Saskin Gales (Google Ads Coach): “Internal Google commentary reveals that the motivations for randomization were not noble.”
Charley Brennand (PPC Consultant & Founder): “Google will never prioritize advertisers’ needs over their need to grow profit.”
Julie Friedman Bacchini (Founder of NeptuneMoon): “These exhibits show that Google Ads is prioritizing what is best for Google Ads first and foremost.”
Nick Handley (Head of Paid Media Performance at Impression): “Google has a monopoly on the Search space, and until another player challenges Google, we’ll continue to see revenue-increasing tactics prioritizing stakeholders over clients.”
Trust in Google Is Quickly Collapsing
Kirk Williams (Founder of Zato): “These documents continually demonstrate Google’s problem: trust. Google has an optics problem, and these documents erode trust further.”
Sarah Stemen: “This challenges the foundation of trust and transparency essential for a healthy digital advertising ecosystem. It raises the question – what else haven’t they been transparent about?”
Dids Reeve: “It feels like the PPC community and their clients are being manipulated.”
Chris Ridley: “We shouldn’t take anything we know about how ad auctions work at face value, even if it’s within the Google Ads Help Center.”
Charley Brennand: “Published data from the court case shows we’ve been manipulated, and even our Google counterparts aren’t privy to what Google is up to.”
Nick Handley: “It’s becoming increasingly harder to trust Google and the recommendations they provide.”
Impact on Advertisers and Clients
Jyll Saskin Gales: “Google’s top customers, who spend millions a year on Google Ads, are being ‘randomly’ pushed down despite their investment.”
Charley Brennand: “If these harmful changes are only just surfacing now, how many other changes have happened under the radar?”
Nick Handley: “How are we meant to trust recommendations from our reps if they are in the dark as much as us?”
Perceived (Un)fairness of Ad Auctions
Kirk Williams: “When users believe an auction is about competition and then learn it’s otherwise, that causes a lack of trust.”
Jyll Saskin Gales: “I support the principle of randomization to prevent those with the deepest pockets from hoarding all the clicks, but the current system seems manipulated.”
Chris Ridley: “Google has long told advertisers that Ad Rank determines ad positions, but recent revelations suggest otherwise.”
Other Reactions of Shock and Disappointment
Sarah Stemen: “Statements like ‘this gives us the freedom to configure pricing’ in court documents are a real blow.”
Dids Reeve: “It’s shocking to see in black and white how Google manipulates and warps the definitions and configuration of Google Ads metrics.”
Julie Friedman Bacchini: “Advertisers and PPC pros have long suspected some of this, but seeing it in these documents is still stunning.”
Why Should You Care?
The breakdown in the relationship between Google and advertisers begins with trust but goes beyond that. It becomes increasingly difficult to trust advice from ad reps, knowing that Google prioritizes revenue over fairness. Advertisers must now work even harder to ensure their ad spend leads to incremental conversions rather than wasted budgets.
For small businesses, the impact of these price increases can be devastating. Over the years, I have witnessed many businesses struggle to justify the rising costs of advertising on Google. What used to cost $150 in ad spend in 2015 now demands closer to $1000 per month for the same number of impressions and clicks. This steep increase is not limited to a single industry; it spans across every business sector I have worked with.
The exponential rise in costs has forced many small businesses to reevaluate their marketing budgets and strategies. For some, the increased costs have become unsustainable, leading to difficult decisions about cutting back on advertising or even discontinuing it altogether. This is particularly challenging for local businesses with limited budgets, as they rely heavily on digital advertising to reach their target audience and compete with larger corporations.
The situation underscores the critical need for meticulous budget management and strategic planning. Small businesses must now be more vigilant than ever in optimizing their ad spend, ensuring every dollar is effectively utilized to generate the highest possible return on investment. This involves continuous monitoring of campaign performance, adjusting bids, refining targeting parameters, and leveraging advanced analytics to make data-driven decisions.
Moreover, it highlights the importance of diversifying marketing efforts. While Google Ads may have been a primary channel for many years, small businesses should explore additional platforms and marketing strategies to mitigate the risks associated with being overly dependent on a single advertising provider. Social media marketing, content marketing, and local SEO can offer alternative avenues to reach potential customers without incurring exorbitant costs.
In summary, the dramatic rise in Google Ads costs has created significant challenges for small businesses, necessitating a more strategic and diversified approach to marketing. By carefully managing their budgets and exploring alternative channels, small businesses can continue to thrive despite the increasing financial pressures of digital advertising.
About Me: I’ve helped hundreds…literally hundreds of small business, medium size businesses and worked for enterprise in my life when their staff screws up. Today I maintain a book of clients privately running their I.T. & Digital Marketing initiatives with the aim of growth. I love working with small business and start-ups vs corporate/enterprise environments for personal reasons and have built a life that sustains that happily. Today, I can happily say I can cherry pick who I work with and I can tell you it’s not all about the money.
Revelations from the DOJ antitrust trial exposed how Google set minimum bid floor limits on selective industries, manipulating the bidding market to raise prices as needed. This practice undermines the very concept of a competitive bidding market, allowing Google to continually increase their ad revenues. This is evident in their record profits from Google Ads, which have been steadily climbing. In Q1 2024 alone, Google Ads generated $58.1 billion in revenue, showcasing their ability to extract maximum revenue from advertisers regardless of market fairness .
As someone who has helped run over 100 Google ad accounts for small businesses since 2011, I have witnessed firsthand the yearly changes that have moved Google away from being a trusted PPC provider. I’ve been saying this for years, working with small and larger companies in running Google Ads accounts. From $200 a month local business accounts to running a $90,000 a month Google Ads account, I have been in the driver’s seat of deploying Google Ads strategies and PPC campaigns. I always tell businesses, “Google is not your friend” and they are the devil we must deal with.
One issue I’ve observed and suspected for years is their practice of industry-specific price hikes. Last fall, it was disclosed that they had established minimum bid baselines for each industry, enabling them to systematically increase revenues by adjusting and targeting specific sectors with percentage increases. Imagine having the capability to examine an industry and decide to implement a 1% increase across the board when you feel like it. Yes, it is infuriating and that is f@cked up.
Here, eleven advertisers share their insights on why trust in Google has plummeted.
Manipulation and Deceptive Practices
Sarah Stemen (Paid Search Specialist and Founder): “Their willingness to rewrite help desk documents is shocking. It seems like Google is trying to hide the mechanics of a potential first-price auction rather than ensuring a truly fair second-price system.”
Boris Beceric (Google Ads Consultant and Coach): “The only one ‘benefitting’ from randomization is Google. Google is a monopoly that’s raising prices without informing advertisers.”
Dids Reeve (Freelance Paid Media Specialist): “The document reads like randomization is code for ‘we can deviate from the usual auction algorithm to make more money’. Google seems to be covering up practices that would otherwise damage their reputation.”
Chris Ridley (Paid Media Manager, Evoluted): “The latest news of Google randomizing the top two ad positions in the hope advertisers will raise their bids is a sign that Google is willing to rewrite the rulebook for advertising on their platform.”
Robert Brady (Founder and PPC Expert): “Exact match bears the name ‘exact,’ but the behavior of the match type is far from exact. The term ‘randomization’ is used to deflect scrutiny while favoring Google.”
Amy Hebdon (Google Ads Conversion Expert): “With RGSP, Google has gaslit advertisers with disingenuous explanations, trying to convince us that this lack of transparency is for our benefit.”
Google’s Prioritization of Profit Over Fairness
Jyll Saskin Gales (Google Ads Coach): “Internal Google commentary reveals that the motivations for randomization were not noble.”
Charley Brennand (PPC Consultant & Founder): “Google will never prioritize advertisers’ needs over their need to grow profit.”
Julie Friedman Bacchini (Founder of NeptuneMoon): “These exhibits show that Google Ads is prioritizing what is best for Google Ads first and foremost.”
Nick Handley (Head of Paid Media Performance at Impression): “Google has a monopoly on the Search space, and until another player challenges Google, we’ll continue to see revenue-increasing tactics prioritizing stakeholders over clients.”
Trust in Google Is Quickly Collapsing
Kirk Williams (Founder of Zato): “These documents continually demonstrate Google’s problem: trust. Google has an optics problem, and these documents erode trust further.”
Sarah Stemen: “This challenges the foundation of trust and transparency essential for a healthy digital advertising ecosystem. It raises the question – what else haven’t they been transparent about?”
Dids Reeve: “It feels like the PPC community and their clients are being manipulated.”
Chris Ridley: “We shouldn’t take anything we know about how ad auctions work at face value, even if it’s within the Google Ads Help Center.”
Charley Brennand: “Published data from the court case shows we’ve been manipulated, and even our Google counterparts aren’t privy to what Google is up to.”
Nick Handley: “It’s becoming increasingly harder to trust Google and the recommendations they provide.”
Impact on Advertisers and Clients
Jyll Saskin Gales: “Google’s top customers, who spend millions a year on Google Ads, are being ‘randomly’ pushed down despite their investment.”
Charley Brennand: “If these harmful changes are only just surfacing now, how many other changes have happened under the radar?”
Nick Handley: “How are we meant to trust recommendations from our reps if they are in the dark as much as us?”
Perceived (Un)fairness of Ad Auctions
Kirk Williams: “When users believe an auction is about competition and then learn it’s otherwise, that causes a lack of trust.”
Jyll Saskin Gales: “I support the principle of randomization to prevent those with the deepest pockets from hoarding all the clicks, but the current system seems manipulated.”
Chris Ridley: “Google has long told advertisers that Ad Rank determines ad positions, but recent revelations suggest otherwise.”
Other Reactions of Shock and Disappointment
Sarah Stemen: “Statements like ‘this gives us the freedom to configure pricing’ in court documents are a real blow.”
Dids Reeve: “It’s shocking to see in black and white how Google manipulates and warps the definitions and configuration of Google Ads metrics.”
Julie Friedman Bacchini: “Advertisers and PPC pros have long suspected some of this, but seeing it in these documents is still stunning.”
Why Should You Care?
The breakdown in the relationship between Google and advertisers begins with trust but goes beyond that. It becomes increasingly difficult to trust advice from ad reps, knowing that Google prioritizes revenue over fairness. Advertisers must now work even harder to ensure their ad spend leads to incremental conversions rather than wasted budgets.
For small businesses, the impact of these price increases can be devastating. Over the years, I have witnessed many businesses struggle to justify the rising costs of advertising on Google. What used to cost $150 in ad spend in 2015 now demands closer to $1000 per month for the same number of impressions and clicks. This steep increase is not limited to a single industry; it spans across every business sector I have worked with.
The exponential rise in costs has forced many small businesses to reevaluate their marketing budgets and strategies. For some, the increased costs have become unsustainable, leading to difficult decisions about cutting back on advertising or even discontinuing it altogether. This is particularly challenging for local businesses with limited budgets, as they rely heavily on digital advertising to reach their target audience and compete with larger corporations.
The situation underscores the critical need for meticulous budget management and strategic planning. Small businesses must now be more vigilant than ever in optimizing their ad spend, ensuring every dollar is effectively utilized to generate the highest possible return on investment. This involves continuous monitoring of campaign performance, adjusting bids, refining targeting parameters, and leveraging advanced analytics to make data-driven decisions.
Moreover, it highlights the importance of diversifying marketing efforts. While Google Ads may have been a primary channel for many years, small businesses should explore additional platforms and marketing strategies to mitigate the risks associated with being overly dependent on a single advertising provider. Social media marketing, content marketing, and local SEO can offer alternative avenues to reach potential customers without incurring exorbitant costs.
In summary, the dramatic rise in Google Ads costs has created significant challenges for small businesses, necessitating a more strategic and diversified approach to marketing. By carefully managing their budgets and exploring alternative channels, small businesses can continue to thrive despite the increasing financial pressures of digital advertising.
About Me: I’ve helped hundreds…literally hundreds of small business, medium size businesses and worked for enterprise in my life when their staff screws up. Today I maintain a book of clients privately running their I.T. & Digital Marketing initiatives with the aim of growth. I love working with small business and start-ups vs corporate/enterprise environments for personal reasons and have built a life that sustains that happily. Today, I can happily say I can cherry pick who I work with and I can tell you it’s not all about the money.
