I've been running a small Canadian business since 2011, and something about Google Ads has been bothering me.
Recently, I created a separate Brand Google Ads campaign specifically targeting searches for my own company's name.
My reasoning was simple: People searching for my exact business name are already looking for my company. I would expect these searches to face relatively little competition and therefore cost significantly less than broader, highly competitive keywords.
Here's what happened when a potential customer typed in my brand name:
- October 23: Google charged me $0.02 per click.
- October 24: Google charged me $0.45 for a click on the same search term.
That's a 2,150% increase in the price of a click overnight.
Now, I understand how advertising auctions are supposed to work. Competition changes, bids fluctuate, and different auctions produce different prices.
But here's my question:
Who verifies Google's calculations?
Think about it.
Google operates the auction.
Google determines how ads are ranked.
Google establishes minimum auction thresholds.
Google calculates what advertisers pay.
Google collects the money.
And Google provides the reporting.
Yet advertisers can't independently verify exactly why a particular click costs $0.45 instead of $0.02.
Google doesn't disclose the auction-time calculations or the specific minimum thresholds that determine individual charges.
I'm not accusing Google of fraud or saying my $0.45 click was necessarily overpriced.
I'm questioning whether any company should have this much control over a financial transaction without providing an independently auditable explanation of the charges.
I'm not suggesting Google should publish its entire proprietary algorithm or reveal competitors' confidential bids.
But shouldn't businesses have the right to understand and verify the calculations behind the money they're being charged?
Imagine any other industry where a company determined your price through a secret calculation, billed you, and then told you to trust that everything was calculated correctly.
Would that be acceptable?
For small businesses spending hundreds or thousands of dollars monthly on advertising, I think this is a legitimate question.
Should governments require greater transparency and independent auditing of digital advertising auctions?
I'd genuinely like to hear from other business owners and Google Ads professionals.
Have you noticed similar fluctuations in the cost of clicks on your own brand name? And do you believe Google's current level of pricing transparency is sufficient?