Google Ads CPCs outpace inflation, squeezing advertiser margins
Google’s own reports show modest year‑over‑year CPC growth, but agency data and WordStream benchmarks reveal double‑digit increases in sectors like legal and travel. Faster CPC inflation means fewer clicks for the same spend, forcing advertisers to raise prices or cut budgets, which squeezes margins. Understanding the true rate is crucial for budgeting and pricing strategy.