Many advertisers have reported a dip in Google Ads performance across multiple accounts in the past few days, especially in the U.S. It’s likely a combination of factors, not just one reason.
Possible Causes for the Drop:
Google's March/April 2025 Core Update:
Organic search shifts often ripple into paid performance. Lower organic traffic can affect Quality Scores and CPCs indirectly.
Tariff Mode / Economic Sentiment:
Consumer behavior changes quickly around economic policy news (tariffs, interest rate changes, etc.), which can lower conversion rates.
Increased Competition:
More advertisers start pushing campaigns in Q2 for Mother’s Day, graduation, early summer sales, etc., driving CPCs up temporarily.
Platform Shifts (Performance Max & AI Changes):
Ongoing tweaks inside Google’s ad delivery and automation systems can cause temporary volatility across industries.
What to Adjust:
- Monitor Quality Scores and Impression Shares carefully.
- Look at conversion rates vs CPCs — see if it’s a pricing issue or demand issue.
- Refresh creatives or audience signals if PMax is underperforming.
- Avoid making large structural changes too fast—watch for 5–7 days to catch trends.
