Constant increase in the cost of keywords - Google Adwords/Yandex.Direct

Question

Google Ads

I am now running an advertising campaign on Google Adwords/Yandex.Direct

And I notice such an interesting, but not very pleasing moment.

I made an advertising campaign, I set the price to enter the guarantee.

For example, the word "bagels" (only as an example).

They tell me - “To enter the guarantee, you need 0.4 USD. per click. Okay, I put 0.4 USD. Shows are on. A day or two passes, I look - there are almost no shows. Yeah, the price of the guarantee has increased, now you need 0.6 USD. Okay, I put 0.6 c.u.

What happens after a couple of days? Of course, the price increase for the "guarantee"! And so, on the sly, with 0.4 c.u. they take me out for 1.9 c.u. The situation is exactly the same for both Google Adwords and Yandex.Direct. Of course, you can imagine that as soon as I entered with my bagel company, a bunch of competing companies immediately appeared, but somehow I can’t believe in such a coincidence.

Almost all rates for all words grow, they grow very quickly, with a minimum time delay. I have to constantly come in and watch the rates, and the advertising company is getting more expensive every day and every next visitor costs me more and more. And the cheapness of advertising on the Internet through the above firms is already a big question for me.

There is only one question - does this happen to everyone or am I just not understanding something?

Answer 1

Everything is logical: your competitors also monitor rates. As soon as you get into the GP, one of the competitors flies out of them. And, accordingly, increases the rate. And I'm sure they're also worried about the rising cost of switching.

Answer 2

Competitors use the so-called prop - they put the price one monetary unit less than yours, forcing you to drain money on your position, while being one position lower in the harp shows and paying less. You can do the same, but yes, increasing the cost of a guarantee is normal when competition increases.
There are a number of topics in which most ads are shown only during general working hours, and in the evening, at night, on weekends, etc. - either disconnected or located with minimum rates. It can be used and cheaply placed. It is better to have two campaigns - daytime and nighttime, so that the daytime one does not spoil the CTR of the nighttime one (as an example).

Answer 3

I also noticed this trend, but since my keywords are in a very competitive niche, I have not yet made a final opinion

Answer 4

The same nonsense: from 3 rubles to 12 within a month on Yandex.Direct

Answer 5

Yes, competitors also want to be in positions convenient for them. And they are ready to raise the stakes for this up to their own reasonable limit. When they reach this limit, they will step back and the rate will freeze or go down. And the more competitive the requests for which you are placed, the more intense this price increase. You can often see how, when growing after reaching a certain value, the rates stop growing and become smaller.
With a competent approach, choosing a placement strategy, managing bids, selecting a large number of queries, including low-competitive and low-frequency ones, you will reach a normal constant average cost per click that is acceptable to you. Which after that increases, perhaps together with inflation. Otherwise, contextual placement would not be so attractive to thousands of advertisers.

Answer 6

It's not just the competition.
Answer from Yandex.

Answer 7

You also need to pay attention to CTR and QS (Quality Score) in AdWords. You can easily beat your competitors by increasing your QS. Here is a clear video about it www.youtube.com/watch?v=Bm8E_7OZTLA