With increasing changes to the search results page (such as AI overviews) and increasing advertising costs, it can be difficult to evaluate the search landscape.
However, paid search marketing is still one of the most popular digital marketing channels for businesses. A recent survey showed nearly half of SMBs (small and midsize businesses) are planning to invest more in paid search efforts this year.
The Big Picture
Search marketing costs have been increasing year over year since 2021, and the latest data shows a continuation of this trend. However, cost per lead has not seen as drastic of an increase for 2025 as it did from 2023 to 2024, indicating a bit more stability in the paid ad space.
Some industries, such as Education and Beauty/Personal Care, have seen more substantial increases overall due to crowded and unstable search page conditions, plus increased competition.
However, although ad costs have gone up, so have Click Through Rates (CTRs) and conversion rates, indicating generally better performance as a whole. Nearly half of advertisers have seen stable or increased Click Through Rates, and 65% of industries saw an increased conversion rate. Despite rising costs, paid search ads are still effective at driving leads and increasing traffic to the advertiser’s website.
Flexibility Is Key
These variables make budgeting an art, not a science. There are unpredictable factors that may or may not impact budgets and performance. With the new normal of economic volatility as well as industry-specific factors, it can be difficult to look even five months out, let alone five years! Being adaptive to potential changes or recommendations for tactics and budgets can help campaigns be even more successful.
The digital world is always evolving, and keeping up with changes and integrating different techniques can help further your marketing strategy. We’re here to walk through any questions and help at every step of the way!
