The Cost of Doing Business
Google is here to charge you more money for the exact same ads, and that’s we’re going to be talking about today. So my name is Justin Sardi. I’m the CEO and co-founder of tubesift.com. And like I said, we’re going to be talking about the new surcharges that Google Ads has coming your way. So let’s go ahead and jump right in. I’m going to be talking about what countries this apply to, how it’s going to affect you, and why this is happening. So I just got an email the other day, and it was Google saying, “Hey, we are adding surcharges to your ad accounts.” Now at first, I was like, “What? This sucks. Blah, blah, blah.” But looking back and thinking about it a little bit, it actually makes sense.
Now this is going into effect October 1st, 2021. And if you haven’t noticed, there have been a lot of new privacy policies, GDPR, all kinds of stuff like that going into effect all around the world, specifically in the EU and a few other places, right? So essentially, what that’s doing is it’s making it harder for ad platforms to serve their ads without incurring additional costs. So what Google is doing to cover their ass on this one is adding a surcharge. So like I said, starting October 1st, 2021, Google is going to be adding a surcharge to your invoices or statements. And a surcharge is essentially an extra percentage based on however much you’ve spent to cover their cost of doing business in these countries.
So I’ve just got my notes here because there’s absolutely no way I’m going to remember this off the top of my head, nor do I need to. But basically, ads served in Austria, 5% surcharge, right? So that’s going to be added. If you’re serving any ads or targeting anybody in Austria, 5% cost increase, right? France, 2% regulatory operating costs is going to be added. India, same thing, 2%. Italy, same thing, 2%. Spain, same thing, 2%. And Turkey is a 5% increase. And then ads served in the UK, they’re adding a 2% UK DST fee added to your invoice or your statement. So those are the countries that they’ve rolled out so far. And like I said, not a huge deal. You don’t have to do anything.
The only way this is going to affect you is that you’re going to have to pay a little bit more in those countries, and that’s to cover the costs of them doing business in those countries due to new regulations and things like that. So unfortunate, but it is how it is with all the new privacy laws, all that good stuff. So that pretty much wraps up what we were going to be talking about today. I don’t have too much more to say on that, except for you’re going to pay more in those countries. And the best way to avoid that cost getting you, biting you in the ass, whatever you want to call it, is to precision target your ads.
Now, the more targeted your ads are, the better your ads are. And the more qualified people you’re showing them to means that you’re going to end up ultimately saving on cost-per-conversion, right? So instead of throwing your ads out there, hoping they work, if you can put them in front of the right people at the exact moment they’re searching for what you have to offer using a software such as TubeSift, you are going to have a much better chance at basically washing those costs and you’re not going to end up costing or adding more to your ad budget because you’re going to be able to get conversions for cheaper. So definitely check out TubeSift.com and start precision targeting your YouTube ads, and make sure that those surcharges are not affecting your bottom line. That’s it from me on this one. Bye for now.
- Jurisdiction-specific surcharges from Google Support
- Targeting via Google Search Terms from TubeSift Blog
- Updated Google Ads Fees in Select Countries from TubeSift Blog
- Google Ads Announces Commitment to Ad Transparency from TubeSift Blog
- YouTube Updates Terms of Service – AGAIN! from TubeSift Blog