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Are larger companies able to get better pricing on google ads?
I work for a wholesaler we’re using a 3rd party for our google ads right now, but we’re looking to bring everything in house. our entire business model is buying in bulk for a discount and then passing those savings onto customers. I’m wondering if there’s a similar principle with google ads? Could our current marketing company be getting better pricing than we would?
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1 Reply
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The answer is, no. Prices are set on an auction basis, so its not available to be bulk-bought.
The story is that for each query, an ‘auction’ takes place which takes into account a variety of things that make up your bid to appear in top/mid/low positions in the serp.
You can probably challenge them to have lower cpc’s though.
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If you are going to [bring this in-house](https://www.takesomerisk.com/hiring-agency-vs-in-house/), you are going to need someone who knows what they are doing. Many people underestimate the skills needed to run, manage and optimize ad accounts. Even if you hire someone part-time for an in-house role, it’s not cheap to get someone with solid skills based on our [salary survey](https://www.reddit.com/r/PPC/comments/11xi72k/ppc_salary_survey_2023_final_report/). You don’t want to go cheap hiring someone to run marketing and or your paid ads.
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The problem is not “pricing”, the problem is that you’re competing against people who have a better understanding of the tools, targeting and audiences.
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Make sure you hire a good profile with Paid Search experience from an agency. These may not come cheap though.
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Google Ads pricing is based on an auction system, where factors like bid amount, ad relevance, and quality score matter more than company size. However, larger companies might have more budget flexibility. Bringing Google Ads in-house can give you more control and potentially better results through optimization. It’s worth exploring to see if you can align your strategy with your unique business model effectively. ????????
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A couple of huge companies (I.e. Shopify) pay CPM for impressions to own the shopping widget and fill it with ads. Your local agency is not one of these companies.
Best cost saving: If you run shopping ads, then you can launch your own CSS and get a 20% discount.
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The short answer is no. The longer answer is sometimes yes, but not because the company is bigger, but because bigger companies may be more likely to have better talent in staff
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Actually there are ways: for example certain users arbitrage Argentinian accounts and are able to effectively save 15% due to currency arbitrage
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I know about 5 years ago Google had a very secret rebate program with some of the large global holding companies. Advertisers never saw any of the savings however.
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No, buying in bulk does not offer a discount. However, having good ads does lead to a discount and spending a lot of money testing many ads will likely lead to better ads than someone with a small budget who’s done less testing
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no BUT they have access to Beta’s and Alphas of new products that Google uses fr case studies.
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Having worked for larger companies anytime we saw competitors enter the auction on our brand terms we would drive our bids up for a period of time until the eventually dropped out. On brand it’s easy because your brand CPCs should be exponentially cheaper for you than anyone else just due to QS alone.
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No but your question suggests that no one in house should be managing them. If you mess it up, it will seem like they did.
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I have the same question because I dont deeply understand this regarding target CPA bidding strategy.
At first I thought like you, the more I invest, the better costs per conversion I will get, but this is not the case. In fact, if you have a bidding strategy with a target CPA, the algorithm will ask you to increase the CPA to obtain more conversions.
I wonder, do big players that need more conversions than a small business pay higher CPAs than the small business?
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No, it’s an open auction. There are no discounts. That said, advertisers that spend more can typically find efficiencies (lower costs per business outcome) that smaller accounts cannot. This takes place through rigorous optimization and automation utilizing bigger conversion data sets.
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