Ad costs are climbing across platforms, and not just because of inflation. Increased competition, stricter privacy regulations, and limited targeting options all contribute to this trend. Google's average cost per click has reached $5.26 in 2025, a 13% increase from the previous year. Similarly, Meta's cost per thousand impressions has jumped 19.2% in Q1 2025 to $10.88.

Yet companies continue investing in paid search. Why? Because it connects you directly with high-intent users actively searching for your products or services. This immediacy and relevance make paid search essential to many companies digital marketing strategy.

The Power of Smarter Data and Targeting

With rising costs, simply spending more won't cut it. Success depends on knowing who to reach and how to reach them. Smart data helps you identify high-value audiences, segment them effectively, and deliver personalized messages that drive conversions. Targeting the right people at the right time reduces waste, boosts engagement, and transforms every ad dollar into measurable results. That's why Launch Labs emphasizes identity-powered targeting using first-party data, enriched with behavioral and in-market signals. Ensuring your campaigns reach high-value users, not just broad audiences.

Connecting with the Right Audiences

Your most powerful audiences are those you already own. Website visitors, email subscribers, and app users have demonstrated intent simply by engaging with your brand. That's what makes first-party audiences so valuable. Activating this data across channels lets you re-engage people most likely to convert and maximize existing traffic value without overspending on cold prospects.

But owned data isn't just for retargeting. Once you've built a strong first-party foundation, you can expand your reach with modeling tools to find new people who resemble your best customers. This approach maintains precise, privacy-forward targeting while extending the value of data you already own.

You can also leverage in-market audiences; people actively researching or ready to purchase products like yours. By combining first-party data with in-market segments, you can deliver relevant offers at perfect moments, generating stronger leads and better conversions. And since these audiences deploy directly into leading ad platforms, you maximize every ad dollar without waste.

The Launch Labs Advantage

Rising ad costs don't necessarily mean higher CPAs. Launch Labs helps brands unlock more value from audiences they already own through:

• Identity resolution that unifies fragmented signals into a single, accurate customer view
• Cross-channel activation of first-party audiences that drives measurable results
• Privacy-forward strategies that respect regulations while enabling precise targeting
• Upcoming direct activation into Meta and Google, deploying your valuable audiences where they'll have maximum impact

With Ignite, smart data strategy ensures your campaigns reach the right people at the right time, without wasting your budget.

Bottom Line

Paid search remains vital because it connects you directly with high-intent customers. The key is to focus on audiences that matter most rather than chasing every click. Launch Labs helps you collect the right data, convert leads, and engage audiences effectively, allowing you to outsmart rising costs and maintain growth.