No, you’re not imagining things: Your Google Ads costs doubled this year.
Competition for childcare keywords has reached new heights, and cost-per-click rates have climbed 30–50% across the industry. Small childcare centers are competing against multi-location brands with seemingly unlimited advertising budgets.
Despite elevated costs, Google Ads still generate more enrollments than any other digital marketing channel. The question isn’t whether you should use Google Ads; it’s how to make every dollar count as the stakes continue to rise.
Why Are Google Ads So Expensive for Childcare Centers?
The explosion in Google Ads pricing isn’t random. Three factors have created a perfect storm of increased competition and higher costs.
Google’s AI Overviews Cut Ad Space
When Google introduced AI-generated summaries at the top of search results, the available space for paid ads decreased.
Less real estate means fiercer competition for the remaining spots. Childcare centers that used to compete for four or five ad positions are fighting for two or three.
Large Brands Blanket Local Markets
Large childcare brands with deep pockets have responded to AI Overviews by pouring more money into their campaigns. These multi-unit operators are blanketing entire regions with their ads and expanding their geographic reach outside their service areas.
When a franchise spends thousands targeting “childcare near me” across an entire metropolitan area, local centers struggle to compete on price alone.
Families Search More General Terms
Families are increasingly searching for more general terms, such as “childcare near me,” rather than specific phrases like “Montessori preschool in downtown Denver.”
These high-level search terms attract the most competition and drive up costs for everyone trying to capture that traffic.
The Modern Childcare Search Journey: Why You Can’t Skip Google Ads
Understanding why Google Ads are so expensive becomes less painful when you understand how families find childcare today.
The modern family’s search journey involves seven to nine touchpoints before enrollment:
- AI tools for initial research (“What should I look for in a daycare?”)
- Google searches for local options
- Ad clicks to visit websites
- Reading reviews across multiple platforms
- Social media investigation
- Deep comparison of finalists
- Tour booking
Families who click Google Ads are searching with the intent to enroll. They’ve moved past the research phase and want specific information about your center. If your center is missing from those search results, you’re missing families at their highest point of interest.
Organic search results alone won’t capture these families. SEO matters for credibility, but Google Ads let you control exactly when and how you appear. You choose the message, the timing, and the searches that trigger your visibility.
How to Manage Expensive Google Ads Without Breaking Your Budget
Google Ads are more expensive than ever. But with a new approach, you can enjoy the benefits of Google Ads: booked tours and full classrooms.
Diversify Your Budget to Fight Expensive Click Costs
Stop putting all your budget into Search Network ads. Yes, these ads appear directly in search results, but they’re also the most expensive option.
Expand your reach to:
- YouTube ads (families love virtual tours)
- Google Maps ads (perfect for “near me” searches)
- Display Network (remarketing to website visitors)
A lead from the Search Network might cost $150. A lead from the Display Network might cost $35. By capturing leads from both sources, your average cost per lead lands somewhere in the middle.
You’re not abandoning high-intent search traffic, but you’re not overpaying for every single lead, either.
Target Precisely to Reduce Wasted Ad Spend
Every wasted click hurts more when costs are high. Tighten your targeting to reach only qualified families.
Focus your campaigns on:
- Five-mile radius maximum (unless you’re in a rural area)
- Household income levels that match your tuition
- Age ranges of actual decision-makers (typically 28–42)
- Exclude searches for “free childcare” or “childcare jobs”
Review your search terms every week. Add negative keywords to filter out irrelevant searches. If local market conditions change (for example, a major employer leaves the area), adjust your targeting immediately to avoid wasting money on clicks from families who can’t enroll.
Track ROI to Justify Higher Google Ads Prices
Cost per click doesn’t tell you anything about your success. Cost per lead shows your real return on investment.
Set up proper conversion tracking that captures:
- Form submissions from qualified families
- Phone calls that last over 60 seconds
- Tour bookings through your website
- Downloads of your tuition guide
Without proper tracking through a CRM system, you’re flying blind. You need to know exactly which campaigns, keywords, and ads generate actual enrollment inquiries. Only then can you optimize toward what works and eliminate what doesn’t.
Beyond the Click: Getting More From Your Google Ads Investment
Your ad quality affects both your costs and results. Google rewards high-quality ads with lower costs and better positioning.
Create ads that:
- Answer the specific questions families searched
- Include your unique value proposition
- Feature a clear call to action
- Link to dedicated landing pages, not your homepage
Your landing page must match the promise made in your ad. If your ad mentions “tour availability this week,” your landing page had better show available tour times immediately.
Misalignment between ads and landing pages increases your costs and decreases your enrollments.
Is Skipping Google Ads an Option?
Some centers try to avoid rising Google Ads costs by relying solely on organic traffic and social media. This strategy rarely works.
When families search “preschool near me,” they see ads first. Your competitors appear at the top of results, on the map, and in the sidebar. By the time families scroll to organic results, they’ve already clicked on three competitors.
You’re not just missing visibility. You’re sending families to your competition.
Social media and organic search support your enrollment efforts, but they can’t replace the immediacy of Google Ads. A family ready to book a tour today won’t wait for your Instagram post to appear in their feed next week.
The Bottom Line on Rising Google Ads Costs
Yes, Google Ads are more expensive than ever. Competition has increased, space has decreased, and big brands keep pushing prices higher.
But families still use Google as their primary tool for finding child care. When you implement Google Ads with smart targeting, budget diversification, and continuous optimization, the resulting ROI justifies your investment.
Stop asking why Google Ads are so expensive. Start asking how to make them work harder for your center.
Ready to turn rising ad costs into rising enrollment? Contact Rose Marketing Solutions today. We’ll audit your current campaigns and show you how to get more from every dollar of your advertising budget.
Frequently Asked Questions
Why are Google Ads so expensive?
When Google introduced AI Overviews, available ad space decreased while competition increased. Large childcare brands with bigger budgets are also blanketing entire regions with ads, which drives up costs for everyone.
Do Google Ads really help childcare centers get more enrollment?
Yes. Families often see Google Ads at the top of their search results, click through to a center’s website, and book tours directly. Centers that appear consistently throughout the search journey generate more qualified leads than those that rely on organic traffic alone.
Can families find my center without Google Ads?
Families might find you through organic search, but it’s risky. Competitors that run ads appear first in search results, which means families might contact three or four other centers before ever seeing your organic listing.
How can childcare centers manage Google Ads costs?
Control Google Ads costs by diversifying your ad spend across multiple networks, not just expensive Search ads. Use precise geographic and demographic targeting to eliminate wasted clicks. Track only qualified enrollment leads and add negative keywords to filter out irrelevant searches.
Are Google Ads still necessary if families use AI tools for childcare research?
Absolutely. AI tools provide families with general advice and checklists, but when they’re ready to take action and book tours, they still rely on Google. You need to be visible at this high-intent moment when families make enrollment decisions.