Starting 1st of January 2024, Google Ads will implement a new operating cost surcharge for Nigerian Google Ads accounts advertising to audiences outside of Nigeria. This article aims to clarify this update and its potential impact on the cost of your campaigns.
What is the Google Operating Cost Surcharge?
The Google Operating Cost Surcharge is a small percentage added to your advertising costs when running campaigns targeted at audiences outside of Nigeria. This surcharge helps cover the additional operational expenses associated with serving ads internationally.
Why is this being implemented?
Google strives to offer a cost-effective advertising platform for all users. However, managing and delivering ads across different countries involves additional operational costs compared to domestic campaigns. This surcharge helps ensure the sustainability of the platform and allows Google to continue offering its services to international advertisers.
What is the surcharge percentage?
The exact percentage of the surcharge may vary depending on various factors. However, Google assures that it remains minimal and strives to keep it as low as possible while covering necessary operational costs. The operating charge for January 2024 is 50% of your ad spend in non-Nigeria territories. Learn moreopen in new window to discover the operating charge for the upcoming months.
How will this impact my campaigns?
The impact on your campaigns will depend on your budget and targeting settings. If you target exclusively within Nigeria, you won't see any change in your costs. However, if you target audiences outside of Nigeria, you can expect a slight increase in your overall ad spend.
How to Check the Google Operating Cost Surcharge for your Google Ads Accounts
While the individual surcharge amount isn't directly shown, you can leverage the detailed data in Insights & Reports to calculate it. Here are the steps to take:
Step 1: Go to Insights & Report: In your Google Ads account, go to Insights & Report > Dashboard > Operating Cost.
Step 2: Open the Operating cost dashboard: Click on the dashboard and once it opens filter the report to see the non-nigerian operating cost for any particular month.
Step 3: Download the cost report: Use the three dot icon on the report to download the report on a sheet and sum up the total cost for any particular month you have chosen.
Step 4: Apply the operating cost percentage for the month: Apply the official operating cost surcharge percentage for the month to arrive at the operating cost you have incurred for that month.
Additional Notes:
The new surcharge only applies to campaigns targeting outside Nigeria.
If you don't see any significant cost increase despite targeting internationally, your campaigns might not be impacted by the surcharge yet.
What can I do?
Here are some steps you can take:
Review your campaign targeting: Ensure your campaigns are targeted accurately to the desired audience locations. Avoid unnecessary targeting to international audiences if not relevant to your business.
Monitor your campaign performance: Closely monitor your campaign performance after the surcharge implementation. Analyze cost metrics like cost-per-click (CPC) and cost-per-acquisition (CPA) to assess the impact.
Optimize your campaigns: Continuously optimize your campaigns for better performance. This can help you achieve your desired results even with slightly increased costs.
How do I pay for the Operating cost each any month
Here are the steps:
Since AdPay will pass these charges back to advertisers who incur the charges, we also calculate these charges to each advertiser at the end of each month.
Once we have calculated your operating cost surcharge for a particular month, the AdPay team will reach out to you with an invoice for payment via an email.
While this update might require some adjustments to your campaign cost, know that Google remains dedicated to offering a transparent and cost-effective platform for all advertisers. By understanding the rationale behind the operating cost surcharge and implementing strategic steps, you can turn this into an opportunity to optimize your campaigns and reach your target audience even more effectively.
Additional Information: This help center article may be updated in the future based on the specific details and official communication from Google regarding the specific operating charge (%) from time to time. Learn more.