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Google is Robbing Us Blind (Proof) @perpetual_traffic

Google is Robbing Us Blind (Proof) @perpetual_traffic

In this article, we will dive into a mind-blowing discussion from the Perpetual Traffic Podcast featuring John Moran, a proficient Google Ads strategist. This is an eye-opener for those who have always had their suspicions about Google's practices, especially concerning Smart Bidding. The revelations here are shocking, yet backed with solid evidence. Without further ado, let’s delve into the highlights and findings discussed in the podcast.

The Sinister Side of Google Ads

John Moran, who has an extensive history with Google Ads and runs an agency, brings forth alarming evidence. He has noticed that when increasing ad budgets, not only do the Conversion Costs (CPCs) increase, but they also do so in a manner that appears to be arbitrarily set by Google’s algorithm.

GA4 and Enhanced Conversions

Google's insistence on moving users to GA4 and enhanced conversions could be more about increasing their profit margins than offering better services. By comprehending how much traffic is valuable to you, Google can manipulate CPCs, thus potentially inflating the cost for advertisers.

The Phenomenon of Arbitrary CPC Increases

John efficiently breaks down this phenomenon by showing clear data correlations where every time he increased his ad budget, Google's CPC also increased disproportionately. The data demonstrates that even a slight budget enhancement results in a significant spike in CPC.

Reverse Engineering Google's Algorithm

John took an ambitious step: he tried to reverse engineer Google's price-fixing model. He switched to manual CPC, removed conversion tracking, and observed astonishing results:

  1. Drop in CPC: His CPC fell drastically while his impressions and click-through rates surged.
  2. Increase in Sales: Despite removing conversion tracking, backend sales saw a dramatic uplift.

Visualization and Data Insights

John’s data visualization displays the same keywords with lower bids achieving superior performance. This finding clearly counters traditional belief where higher bids should yield higher visibility.

The Call for Transparency

This information emphasizes the need for transparency from Google. Advertisers need to know whether they're being exploited by the CPC increases that Google unapologetically implements.

Final Thoughts

It's high time advertisers evaluate and perhaps challenge Google’s practices regarding CPC. As John demonstrated, even if you're running successful campaigns, true scale is often achieved through scrutinizing and rigorously testing various bidding strategies.

Keywords

  • Google Ads
  • Smart Bidding
  • CPC Increase
  • Conversion Tracking
  • Reverse Engineering Algorithm
  • Manual CPC
  • Enhanced Conversions
  • Google Price Fixing

FAQs

1. What is Google's Smart Bidding?

Smart Bidding is an automated bidding strategy in Google Ads that uses machine learning to optimize for conversions or conversion value in every auction.

2. Why is GA4 so important for Google Ads?

GA4 provides enhanced conversion tracking options, which Google pushes to enrich conversion data, allowing for better targeting and potentially higher CPCs.

3. How does increasing ad budget affect CPC?

Increasing the ad budget often leads to an increase in CPC, as shown by John Moran’s data during the podcast, raising concerns about arbitrary price adjustments by Google.

4. Can conversion tracking impact CPC?

Yes, conversion tracking significantly impacts CPC. Lack of conversion data seems to push Google’s algorithm to provide cheaper traffic, as demonstrated by John Moran.

5. Why switch to manual CPC from Smart Bidding?

Switching to manual CPC can sometimes result in lower CPC and good visibility without compromising ad performance, countering Google's automated increases.

6. What results did John Moran observe after removing conversion tracking?

John observed increased traffic and backend sales while paying significantly less for clicks, suggesting that Google rewards campaigns with cheaper traffic under specific conditions.

7. Should advertisers stop using Google Ads?

No, despite these findings, Google Ads remains a critical platform for reaching customers. However, advertisers should be cautious and consider testing different strategies.

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