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Why it is becoming increasingly difficult for B2B companies and service providers to cover their costs with Google advertising

The digital advertising landscape has changed dramatically in recent years. Especially for B2B companies and service providers, it is becoming increasingly difficult to break even with Google advertising. In this article, we will look at the main reasons why these changes have taken place and what challenges this poses for B2B companies.

Growing competition:

The number of companies using Google advertising has increased significantly in recent years. As a result, competition for limited advertising space on search results pages and in Google Ads has increased significantly. As competition increases, so does the cost per click and per conversion, resulting in higher ad spend for B2B companies and service providers.

Rising click prices:

Click prices in Google Ads have risen sharply in many industries. Especially in B2B areas with expensive products or services, the cost per click can quickly skyrocket. It is becoming increasingly difficult for companies to find cost-effective keywords to reach their target audience.

Long sales cycles:

B2B companies and service providers often have longer sales cycles than B2C companies. Business customers tend to take longer to make decisions, which can lead to higher costs per conversion. Tracking conversions and accurately measuring advertising success becomes more complicated as a result.

Ad blockers and ad blindness:

More and more Internet users are using ad blockers to protect themselves from advertising. As a result, ads are less visible and thus less noticed. Even when companies invest in Google Ads, a significant portion of their target audience may not even see the ads.

Complexity of Google Ads:

Google Ads is an extremely complex advertising tool with many setting options and features. For small and medium B2B companies, it can be difficult to set up and optimize an effective advertising campaign, especially if there is no designated Google Ads expert in the company.

Shift to other platforms:

With the rise of social media and other advertising platforms, some companies are shifting their advertising budgets away from Google Ads. Depending on the target audience and industry, advertising on platforms such as LinkedIn, Facebook or specialized industry portals may be more cost-effective and targeted.

Conclusion:

B2B companies and service providers are finding it increasingly difficult to cover their advertising costs with Google Ads. Increasing competition, rising click prices, long sales cycles, ad blockers and the complexity of Google Ads are just some of the challenges they face. It is important that companies carefully rethink their advertising strategies and possibly consider alternative advertising platforms to effectively reach their target audience and achieve their marketing goals.