Media Buyers Question Google Search Spend as Q4 CPCs Climb
TLDR
Media buyers are scrutinizing Google search spend more closely as AI Overviews reduce clicks and fewer ad slots, while automated bidding raises CPCs during Q4.
Optimixed Overview
Optimixed's original report on this story.
Google now answers more queries directly on the results page, which reduces click-through to advertisers and fewer prime ad slots remain, according to Digiday. Across conversations with 18 media buyers, the outlet found clients questioning what the higher Q4 spend on automated Google campaigns is actually buying as seasonal advertisers bid up CPCs.
How we got here: earlier coverage
- Nov 1Google adds Add to cart and Buy now buttons to its Search product panels
Google's Search product panels now include Add to cart and Buy now buttons, while retailers' Visit site link remains at the top of the panel.
- Oct 30Google's Q3 Earnings Call Outlines a Future Where Traditional Search Is No Longer Central
Google's Q3 earnings call laid out a vision in which traditional Search may no longer be the central experience.
- Sep 18Google Search drops free product listings and carousels from European Economic Area
Google has removed free product listings and carousel formats from Search in the European Economic Area as mandated by the Digital Markets Act.
- Sep 9Google changes target bidding to prioritize predictability over outperformance
Google's updated target bidding now treats CPA and ROAS as literal performance targets rather than efficiency safeguards, shifting how PPC marketers should optimize campaigns.