Ads Are Getting More Expensive. But That’s Not What’s Holding You Back
TL;DR
Google Ads are getting more expensive every year. You can’t change that. But you can control how efficiently your funnel converts every click into cash. Funnel Math is how you survive rising CPCs without burning through your budget. Know your numbers. Find the leak. Fix the leak. That’s how you win.
Let’s face it — the average CPC (Cost Per Click) is rising across the board:
Finance: +25% YoY
Retail: +40-50% in 5 years
Legal: ₹500+ per click in some cases
Google Ads runs on an auction. More players = higher bids = higher costs.
And here’s what most advertisers do wrong:
Increase the budget but ignore conversion rates
Hire agencies that recycle last year’s playbook
Quit and blame Google for “being too expensive”
They’re not wrong. Google Ads is expensive.
But what’s killing them isn’t the platform — it’s the leaky funnel behind it.
Every ad funnel is a sequence of conversion rates.
If you improve nothing, you’ll always overpay.
CTR (Click-Through Rate): 2% → 20 clicks
LP CVR (Landing Page Conversion Rate): 10% → 2 leads
Sales Conversion: 20% → 0.4 sales
End-to-End CVR = 0.02 × 0.10 × 0.20 = 0.0004 → 0.04%
If your CPC is ₹50:
Cost per lead = ₹500
Cost per sale = ₹2,500
If your product margin is under that, you’re burning cash.
Improve LP CVR from 10% → 12%
Improve Follow-Up from 20% → 25%
New math:
0.02 × 0.12 × 0.25 = 0.0006 → 0.06%
That’s a 26.7% drop in cost per sale — without touching your ads.
You didn’t increase the budget. You just made the funnel smarter.
Now improve:
CTR by 10% (2% → 2.2%)
LP CVR by 10% (10% → 11%)
Follow-Up by 10% (20% → 22%)
New funnel math: 0.022 × 0.11 × 0.22 = 0.0005324 → 0.05324%
That’s a 33.1% lift in final conversion rate.
Same budget. More output. That’s real leverage.
Here’s my 4-step audit flow:
Map every funnel step (CTR, LP CVR, Form fills, MQL/SQL, Sales)
Benchmark each stage against industry norms
Model improvement scenarios (e.g., What happens if LP improves by 5%?)
Find the step with the highest ROI per % gain
It’s not guesswork. It’s math.
Old-school ads worked because clicks were cheap.
Now, the margin for error is thin.
If your landing page takes 6 seconds to load — you’re out.
If your follow-up is “Hi” on WhatsApp — you’re done.
If your headline doesn’t match the ad — you just lost trust.
Google isn’t expensive. Wasted clicks are.
Every step is a dial. Every % improvement compounds.
Want to win?
Track everything
Diagnose weak points
Test fixes systematically
Prioritize the changes that move the needle
If your funnel isn’t engineered — your ads will stay expensive forever.
Most funnels I see have a 30–60% opportunity gap just waiting to be fixed.
That’s why I offer a ₹99 audit:
I’ll break down your exact numbers
Show you where your funnel is leaking
Tell you what to fix first — before you spend another ₹50,000 scaling something broken
👉 DM me “audit” and I’ll walk you through it.
Funnel math isn’t theory. It’s survival.
When ad costs spike, this is what separates the marketers who scale from the ones who sink.
Get good at the math, or get buried by it.