Why Has My Google Ads Performance Slowed?

Whilst the world was in lockdown and the Covid19 pandemic raged on, the eCommerce market enjoyed a huge upturn. As we now learn to live with Covid19, the pandemic-eCommerce bubble of 2020 has burst; and it shows no signs of re-inflating anytime soon. Read on to discover why.

Increased Competition #

The number of online retailers has dramatically increased over the past two years. Indeed, while many traditional businesses were forced to explore a newfound online presence, many retail businesses were created solely to take advantage of the increased demand for an online sales presence.

Rising CPC Costs #

Many Google Ads consultants have reported that Cost Per Click, so far during 2022, are at their third highest levels since records began back in October 2017. In short, Cost Per Click is currently on par with the peak trading months of both November and December.

Cost of Living Crisis #

In January 2022, the cost of living hit a 30 year high. Energy, fuel and food prices surged by 5.5% and are expected to climb above 8.5% this year. This inevitably means that consumers have less disposable income to spend within the retail market.

With further increases in interest rates, TV, and broadband prices to come, and with the cost of living crisis set to therefore only get worse, the pandemic-eCommerce bubble of 2020-21 seems worlds away.

International Conflict #

Now, you may be wondering what Russia’s war on Ukraine has to do with the fortunes of a standard advertiser in the UK, but as outlined above, the cost of living crisis is having a monumental impact on everyone within society.

Again, the increases in energy, fuel and even basic transport, means that retailers are having to also increase their prices which, in turn, means passing those increases onto the consumer.

Drop in Demand #

A number of online businesses have seen a sharp drop in demand, even more so where fast fashion and unsustainable goods are concerned.

As many consumers continue to tighten their belts ahead of unprecedented and uncertain times, buyers have started to prioritise what they need rather than what they want. This issue is further compounded by the increase in competition and constantly rising advertising costs.

PPC Geeks: An eCommerce Agency You Can Trust #

At PPC Geeks, we are immensely proud of how we weathered the Covid19 pandemic. Indeed, as the cost of living crisis tightens its grip on the country and the pandemic-eCommerce bubble bursts, we at PPC Geeks have got you and your business covered.