Google search ads prices drop by 90%, but spending still rises? The issue isn't about money, it's about structure!

Many people encounter this issue when running Google Search Ads:

Bids have dropped by 90%, so why is CPC still so high? Spending keeps rising, but inquiries remain poor? The truth is, this isn't a money issue—it's a problem with the ad auction mechanism and traffic structure.

Google's ad ranking = Bid × Quality Score × Relevance.

In other words, even if you lower your bid by 10%, if competitors bid higher, your quality score is low, or your ad/keyword relevance is poor,

the system will still raise your CPC to 'compete for exposure.' The result? You spend more without improved performance.

Now, why is spending still rising?

It's usually due to overly broad match types, excessive budgets, or geographic settings including secondary regions. To 'exhaust the budget,' the system auto-scales, spending on low-converting traffic. The outcome? Higher spending but no increase in inquiries.

Poor inquiries often stem from ads attracting low-intent traffic or mismatched landing pages. Users click not to purchase but to browse casually. So while you save on bids, you're not saving in the right direction.

The real optimization approach is—

First, tighten keyword matching and improve ad relevance/quality scores;

Then, exclude ineffective regions and control budgets;

Finally, optimize landing pages to align with B2B purchasing logic.

Remember: It's not about saving 10% on bids—it's about eliminating 90% of worthless clicks.