The news: Google Search advertising is getting more expensive, but click growth is softening across categories, according to Tinuiti’s Q3 report.

• Cost-per-click (CPC) averaged 0% growth between Q3 2025 and Q2 2026. In Q3 2026, however, CPCs increased 4% YoY.
• Despite CPCs rising, click growth slowed four points YoY to 9% in Q3 for Google Search overall.
• Growth slowed to 14% for Google US Shopping ads, down from about 18% in Q2 2026.
• Google text ad click growth decreased by four percentage points YoY to 4%.

Behind the numbers: Tinuiti points to two primary shifts driving CPC increases.

• Amazon’s exit from most US Google Shopping ad auctions in July 2025 reduced competition for Shopping placements, making clicks cheaper. That temporary pricing effect seems to be fading as YoY comparisons shift to the period after Amazon’s withdrawal.
• None of the largest retailers running Google Shopping placements stepped in to fill Amazon’s gap. This left the competitive landscape among major retail advertisers largely unchanged through H1 2026.

Click growth is slowing after the boost advertisers received when Amazon stopped competing in most Google Shopping auctions.

Recommendations for marketers:

• Reassess search budgets against conversion performance. As Google’s CPCs rise, marketers may need to spend more to maintain stable traffic levels. Track cost-per-acquisition and conversion rates alongside CPCs to determine whether more expensive clicks are generating sufficient business value.
• Watch for further changes in auction costs. The unusually favorable pricing environment caused by Amazon’s withdrawal is fading; marketers should adjust search budget projections to account for renewed CPC growth rather than assuming costs will remain flat after Q3’s rebound.
• Measure text and Shopping ads separately. Text ad click growth slowed to just 4% compared with Shopping’s stronger 14% growth. Compare each format’s costs and conversion performance to understand where search budgets are best allocated rather than assuming both are seeing the same slowdown.

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