NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In

Advertisement
Advertise with NZME.
Home / Business

Google ad costs, not its alleged monopoly, irks businesses

Other
1 Nov, 2020 09:40 PM6 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Monopoly or not, small business owners' biggest complaint about Google is that its advertising policies favor companies with big marketing budgets. Photo / AP

Monopoly or not, small business owners' biggest complaint about Google is that its advertising policies favor companies with big marketing budgets. Photo / AP

When asked about Google, Bryan Clayton voices a familiar lament among small-business owners.

"You keep getting squeezed further and further down the search results page," says Clayton, CEO of GreenPal, a company that operates an app to help homeowners find lawn care. "As a startup, you don't have a million-dollar advertising budget."

The Justice Department sued Google on October 20 for anticompetitive behavior, saying the company's dominance in online search and advertising harms rivals and consumers.

Owners such as Clayton have a different beef. What's unfair about Google, they say, is the way it gives the greatest prominence in search results to the companies that spend the most on advertising.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

Companies covet the top spots in Google search results — the first page of rankings, and the top of subsequent pages. But if too many companies vie for one of these spots, the cost can jump out of reach for a small business, just like the price for prime-time TV commercials.

Google controls about 90 per cent of global internet searches. The Justice Department sued Google Tuesday, alleging it uses monopoly power in search to squelch competition. Business owners' concerns about the cost of advertising aren't directly related to the government's lawsuit, although the company's dominance of the search market has been alleged to be a factor in driving up the price to buy ads in its vast digital marketing network.

But even if prices were lower than they are now, larger companies with more money to spend, in theory, could always outbid smaller businesses vying for the prime advertising spots on Google.

Businesses have two main ways of trying to get their listings high in Google rankings. One is to buy an ad that's seen at the top of the search result pages; the cost for the ads depends on how often a computer user clicks on the ad and how much a company is willing to pay per click. The more a company can pay, the more likely it will get a prized spot in search results. Google has different types of ads, and whether an ad appears locally or nationally can also affect pricing. So can the time of day an ad appears.

Advertisement
Advertise with NZME.

There's also what's called paid search, where companies bid on keywords to get a higher ranking. For example, a sporting goods store might bid on words like "baseball" and "hockey" in hopes of landing higher in search results and being more easily seen by customers looking for equipment for those sports. The problem businesses face is they can be outbid by companies with deeper pockets. So the sporting goods store that can only afford to pay $2 a word can lose out to stores able to pay $10.

Mark Aselstine has spent as much as $30,000 a year on Google advertising, but he's not sure his wine gift basket company will be able to afford Google ads this holiday season. He expects an already competitive time of year to be even more intense as more wine retailers seek customers over the internet due to the coronavirus outbreak and use Google advertising to make themselves more visible.

"I don't think we'll run a single Google ad this year. I suspect it will be well out of our price range," says Aselstine, owner of Uncorked Ventures, based in El Cerrito, California.

If Aselstine can't afford Google, he has alternatives. Microsoft's Bing search engine, cheaper but not as popular among computer users, is one. Aselstine can also increase his use of Google's unpaid search. Like the paid version, he'd seek to use keywords in his ads that prospective customers are likely to search for; depending on the words he chooses, he might get a good ranking, although it will still fall below ads and paid listings.

Discover more

World

Tech losses drive Wall Street down again

30 Oct 09:17 PM
Business

Sasha Borissenko: Trial by social media

01 Nov 12:34 AM

R.J. Huebert, who buys Google ads on behalf of the law firms, manufacturers and a credit union that are his clients, also sees prices going up because of the competition among advertisers, but the owner of HBT Digital Consulting says, "I think it's the cost of doing business."

Huebert, whose company is based in Pittsburgh, sees Google as an important tool for small businesses because of its reach. And when people begin a search on Google, they're already interested in a product or service; they have what's known as high intent, a high likelihood that they're going to make a purchase. And they're more likely to buy than someone who happens on an ad as they scroll through Facebook.

Aselstine says he'll advertise on Facebook and Instagram if he can't afford Google, although he's likely to get more sales from people who search on Google.

"Those people are more ready to buy that day," he says.

Clayton, the GreenPal CEO, spends about $100,000 a year on Google advertising. That's a big number for a small company — GreenPal has 23 employees —but Clayton lists giants Angie's List and HomeAdviser among his competitors that have much bigger advertising budgets. GreenPal, based in Nashville, Tennessee, and serving homeowners in most of the states, spends about $3 or $4 per click for ads.

But, Clayton says, "it's getting harder to advertise — the price keeps going up and up".

Advertisement
Advertise with NZME.

Tommy Fang tried Google to advertise his year-old market research company, but the cost far outweighed the business he hoped it would bring in.

"We ran a couple of ads and the economics just didn't work out for us," says Fang, co-founder of New York-based Eureka Surveys. The company runs a website where people can take part in surveys.

Fang is looking at other possibilities, such as the advertising Apple sells for mobile devices. However, Fang's business, which involves finding participants for corporate surveys, is focused on PCs, where he says people prefer to answer survey questions.

Yet some small businesses don't flinch at the higher prices. Advertising on Google makes sense even for some of Huebert's law firm clients who often spend between $8 and $12 a click and as much as $35 because they can make the money back from a single case.

But "if you're selling $5 socks, it doesn't make sense to pay $35", he says.

- Associated Press

Advertisement
Advertise with NZME.
Save

    Share this article

Latest from Business

Premium
Property

Liquidator helps secure visas for 60 workers from failed NZ firm

Premium
Shares

Market close: High volumes of Infratil lift market after ASX 200 inclusion

Premium
Banking and finance

'Misguided stunt': ANZ declines $300m legal settlement offer


Sponsored

Tired of missing out on getting to global summits to help grow your business?

Advertisement
Advertise with NZME.

Latest from Business

Premium
Premium
Liquidator helps secure visas for 60 workers from failed NZ firm
Property

Liquidator helps secure visas for 60 workers from failed NZ firm

'The welfare of these ProLink employees was paramount to me' – liquidator Pritesh Patel.

16 Jul 06:00 AM
Premium
Premium
Market close: High volumes of Infratil lift market after ASX 200 inclusion
Shares

Market close: High volumes of Infratil lift market after ASX 200 inclusion

16 Jul 05:49 AM
Premium
Premium
'Misguided stunt': ANZ declines $300m legal settlement offer
Banking and finance

'Misguided stunt': ANZ declines $300m legal settlement offer

16 Jul 04:41 AM


Tired of missing out on getting to global summits to help grow your business?
Sponsored

Tired of missing out on getting to global summits to help grow your business?

14 Jul 04:48 AM
NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP