The cost of running Google Ads continues to climb – and 2025 is no exception. And it’s not just ROAST feeling the pinch, advertisers across nearly every vertical are feeling the pressure as Cost-Per-Click (CPC) rises to record highs (Ref 1,2,3). This inflation isn’t just a fluke or the result of increased competition alone: it reflects a confluence of structural changes within the advertising ecosystem.
From Google’s continued automation push and expansion of keyword matching to platform-level bidding wars and increased investment in digital across industries, we’re seeing a more aggressive auction environment. Add in reduced visibility into user data post-cookie, and it’s clear that advertisers are now paying more per click, not necessarily because demand is booming, but because precision and efficiency are harder to come by.
As an industry-wide trend, at ROAST, we’re seeing this trend reflected in our own client data, and it’s prompted a deeper look at both the why and the what next. ROAST Account Manager Charlie Chester unpacks our internal findings, sharing what we’re doing to drive efficiency in this climate and our ability to offer actionable tactics that balance both performance and cost.
A changing search landscape
A recent review of keyword performance across ROAST clients highlights a significant shift in the Google Ads keyword landscape in 2025.
Throughout Q1, ROAST have observed a sharp rise in the cost of exact match clicks, with Google appearing to prioritise phrase and broad match keywords. This shift presents new challenges for advertisers who rely on exact matches for precision targeting and cost efficiency.
Performance Trends: What the Data Tells Us
Analysing performance in January and February, we’ve seen:
- A 10 percentage point (pp) decrease in exact match click share, aligning with a steady increase in phrase match impressions.
- A 91% increase in exact match CPCs from December into January across multiple clients, making it clear that cost pressures are mounting.
This shift suggests that Google is favouring broader keyword matching while simultaneously increasing the cost of maintaining control over search queries via exact match.
The brand keyword impact
Google’s guidance recommends leveraging phrase and broad matches alongside smart bidding tools to optimise conversions. However, for critical terms like brand names, ROAST continues to prioritise exact matches to maintain control.
To illustrate why this is important:
- One client’s phrase match brand keyword saw CPCs 4x higher than its exact match equivalent – despite no competitors appearing in auction insights.
- When isolating brand terms, we observed a clear spike in exact match CPCs, while click volume remained flat.
- If investment, competition, and volume remain unchanged – why are costs increasing? The trend suggests a gradual but persistent shift toward phrase match keywords, likely influenced by Google’s automation and bidding algorithms.
How advertisers can respond
Despite these changes, there are still ways to manage CPC inflation effectively:
- Demonstrate the Value of Exact Match – While Google is pushing phrase match, our data still shows clear cost benefits to maintaining control with exact match.
- Refine Keyword Structures – Ensure phrase and broad match terms are tightly controlled with negative keywords. Regularly review and build out exact match terms to limit unnecessary spending.
- Leverage First-Party Data – Efficient audience segmentation and automation tools should be used strategically to maintain performance and advertiser control.
- Monitor and Adapt to Google’s Algorithmic Shifts – Google’s machine learning is constantly evolving, so maintaining an agile approach to bidding and match type strategy is critical.
We hope to have highlighted how ROAST is monitoring this industry-wide trend. Afterall, managing search performance in an environment of rising CPCs requires expertise, adaptability, and a data-led approach. At ROAST, we help clients navigate these challenges by ensuring search strategies remain efficient, cost-effective, and aligned with the latest platform developments.
Get in touch with our team to discuss how we can help optimise your paid search campaigns in 2025.
References:
- Search Engine Land: CPCs keep increasing – here’s what you can do about it
- BrightBid: How to fight back Google CPC inflation in 2025
- Foundery Digital: Rising CPCs and evolving trends in digital advertising
