Navigating Rising Costs per Click in Google Ads: Insights from the KBB Industry


In recent years, the Kitchen, Bedroom, and Bathroom (KBB) industry has experienced a significant surge in the cost-per-clicks (CPCs) on Google Ads. This increase in advertising expenses has been a concern for businesses in the sector, impacting their marketing budgets and overall profitability. In this blog post, we will delve into the various factors causing this rise in CPCs, including reduced search volume due to the current economic state, increased competition, seasonal fluctuations, local population density, and competition.

Economic Factors Impacting Search Volume:

The KBB industry, like many others, is influenced by the current economic state. High-interest rates and a cost of living crisis can lead to decreased consumer spending and a cautious approach towards investments like home improvement projects. Consequently, the demand for KBB products and services may experience fluctuations, leading to reduced search volumes on Google Ads during economically challenging times.

  • Increased Competition on Google Ads – The digital advertising landscape has become more competitive over the years, with an increasing number of retailers and businesses bidding for a share of the market. As more players utilize the Google Ads platform to promote their KBB products and services, bidding wars ensue, driving up the CPCs for relevant keywords.
  • Seasonal Fluctuations and School Holidays – During school holidays, search volumes in the KBB industry historically experience a dip due to several factors. Parents prioritise spending quality time with their children, leading to reduced online searches for home improvement projects. Additionally, the holiday season prompts people to take vacations, diverting attention away from renovation and remodeling searches. Moreover, favorable weather conditions often encourage outdoor activities, resulting in fewer individuals searching online for KBB services during this period.
  • Local Population Density and Search Volume – The search volumes for KBB services can be influenced by the population density in specific regions. Higher population density areas tend to have more potential customers seeking remodeling solutions, thereby affecting the demand for related keywords and impacting CPCs in those regions.
  • Impact of Local Competition – The level of competition in a specific local area can significantly affect CPCs. Areas with numerous KBB retailers and service providers competing for ad space may drive up the costs of advertising for relevant keywords in those locations.

Changes in CPCs over the Past 5-10 Years:

Over the last 5-10 years, the CPCs in the KBB industry have experienced a significant increase. While the exact figures may vary depending on specific keywords and regions, an overall upward trend is observed due to the aforementioned factors. For example, a typical CPC for keywords related to kitchen renovations may have increased by 30-50% during this period.

The challenges posed by the rising CPCs on Google Ads for the KBB industry are significant but not insurmountable. At Lead Wolf, we are committed to tackling these changes head on by deploying data-driven straegies, collaborating with our clients to harness local insights, and crafting compelling ad copies with performance optimised landing pages, a combination that we hope will ensure our clients stand out in this competitive landscape. Together, we nagivate these challenges, driving growth and success in KBB marketing.

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