The holidays are here, and your Google Ads budget is likely feeling the pressure. But there’s a sneaky problem many advertisers don’t realize: uncontested ads could be draining your marketing dollars, even when you’re the only bidder. And unfortunately, this is happening more often than you might think.

At this time of year, Google Search and Shopping Ads are expected to hit over $70 billion in holiday spending. But behind those big numbers lies a little-known flaw in Google’s auction system that’s costing you money — even if there’s no competition. It’s what we call the Uncontested Google Ads Problem, and it’s one of the most overlooked causes of wasted ad spend during the peak retail season.

The Problem: Your CPCs Aren’t Dropping When You’re the Only Bidder

Here’s the issue: When no one else is bidding on your keywords, Google doesn’t automatically lower your Cost-Per-Click (CPC). You might think you’d be paying less when you’re the only bidder, but instead, Google may keep charging you the same high CPC you’d pay if your competitors were active. It’s a hidden drain on your budget — and most marketers don’t even notice it’s happening.

This problem happens more than you think — especially with brand terms, Shopping placements, and category keywords. Even if no one else is competing for those spaces, you could still be overpaying.

Why Is This Happening?

John Beresford, Chief Revenue Officer at BrandPilot, recently unpacked this issue during his session at SMX Next. He highlighted how a behavioral quirk in Google’s auction logic causes this unexpected over-spending. It’s a common occurrence that, unfortunately, many brands aren’t even aware of.

In his session, Beresford discussed:

• Why “competition gaps” happen more often than you think.
• How uncontested moments still result in inflated CPCs.
• The power of real-time auction visibility and how AI is revolutionizing the bidding process.

What Can You Do About It?

So, how can you stop this from hurting your budget? The key is to implement smart, AI-driven bidding strategies that can identify and suppress unnecessary self-bidding. By doing this, you’ll not only reclaim wasted spend but also reinvest those funds into growing your brand without sacrificing performance.

BrandPilot shared actionable insights on how marketers can:

• Pinpoint why CPCs are artificially inflated when no competitors are bidding.
• Estimate the true cost of the Uncontested Ads Problem on your overall marketing budget.
• Use AI-powered bidding techniques to lower CPCs and improve ROAS (Return on Ad Spend).

If you’re looking to maximize your holiday advertising spend and avoid unnecessary overpayment on your PPC campaigns, partnering with the leading PPC agency in New York, SEO Guru NYC, can make all the difference. Our team of experts specializes in optimizing Google Ads to ensure you’re only paying for clicks that matter, even when competition is low. By leveraging AI-driven strategies and real-time auction insights, we help businesses reduce wasted ad spend and drive better results. Ready to reclaim your budget and boost your return on ad spend? Contact us today, the trusted name in New York for advanced PPC management.