Are Google Ads Making It Harder for Small Businesses? What the March 2025 Update Means for You
Google Ads has long been a powerful tool for businesses of all sizes to reach their target audience. However, with each update, small businesses often find themselves wondering if the playing field is becoming more unbalanced in favor of large corporations with massive budgets. The March 2025 Google Ads update brings new changes that could significantly impact how small businesses compete in the digital advertising space.
So, is Google making it harder for small businesses to thrive? Let’s break down what’s changed, who benefits the most, and what small businesses can do to stay competitive.
Source: Bastian Riccardi
What’s in the March 2025 Google Ads Update?
The latest Google Ads update introduces several key changes:
Increased Automation & AI-Driven Bidding – More reliance on Google’s AI to optimize bidding strategies, with fewer manual control options.
Higher Emphasis on First-Party Data – Google is shifting away from third-party cookies, requiring advertisers to rely on their own customer data.
Changes to Ad Placement & Visibility – Ads with higher Quality Scores and engagement rates get priority, potentially making it harder for small businesses to gain traction.
Rising CPCs (Cost Per Click) – Increased competition and automation have led to higher ad costs in many industries.
While these updates aim to improve ad performance, they also create new challenges for small businesses with limited budgets.
The Impact on Small Businesses vs. Big Advertisers
Big Brands: The Winners?
Larger advertisers have an advantage with these updates because:
They can afford higher CPCs without significantly impacting their ROI.
They have more first-party data, allowing them to create precise audience segments.
They benefit from automation, since they run multiple campaigns at scale, making AI-driven optimisations more effective.
They get early access to beta features that improve ad performance before they roll out to everyone.
Small Businesses: Facing More Challenges?
For smaller advertisers, these updates introduce new hurdles:
Higher ad costs mean less visibility for those with limited budgets.
Reduced manual control makes it harder for businesses to fine-tune campaigns based on their unique insights.
Limited access to first-party data compared to larger competitors who have extensive customer lists and website traffic.
Stricter ad policies could lead to more disapprovals, making it tougher for new businesses to get started.
Strategies for Small Businesses to Stay Competitive
While these updates may pose challenges, small businesses can still succeed by adapting smart strategies:
A. Focus on High-Intent Keywords & Long-Tail Searches
Avoid highly competitive broad keywords that drive up CPCs.
Target long-tail keywords that capture specific customer intent and lower competition.
B. Leverage First-Party Data & Customer Lists
Build email lists and encourage sign-ups to use for remarketing campaigns.
Use CRM tools to segment audiences and create personalized ad experiences.
C. Optimize for Quality Score & Ad Relevance
Ensure your landing pages match ad copy to improve Quality Scores.
Create engaging ad creatives that boost CTR (Click-Through Rate) and reduce costs.
D. Diversify Your Ad Strategy
Instead of relying solely on Google Search Ads, explore Google Display, YouTube, and Performance Max campaigns.
Test alternative platforms like Microsoft Ads, Facebook Ads, and TikTok Ads for better ROI.
E. Utilize Google’s Free & Low-Cost Tools
Use Google My Business for local search visibility.
Take advantage of organic SEO and content marketing to supplement paid efforts.
Conclusion
The March 2025 Google Ads update undeniably creates challenges for small businesses, particularly with rising CPCs and reduced manual controls. However, success is still achievable with smart targeting, leveraging first-party data, and focusing on ad quality.
Small businesses that stay agile and adapt to these changes can continue to compete effectively—even against larger advertisers. By optimising their strategies and exploring alternative platforms, they can maintain strong ad performance and continue growing in an increasingly competitive digital landscape.
Are you a small business struggling with Google Ads changes? Let us help you navigate these updates and optimise your campaigns for success! Contact us today.