Why Your Ad Spend Changes Month to Month (And What You Can Do About It)
By KATIE THOMPSON
Senior Impact Specialist, Larison Media
If you’ve ever run ads on Google or Facebook for your business, you’ve probably noticed something odd: sometimes your costs go up… even when you didn’t change anything.
Maybe one month your cost-per-click is totally manageable, and the next it’s double. Or your ads suddenly stop reaching people even though your budget stayed the same.
It’s frustrating. And confusing.
But here’s the thing: it’s not random. Ad costs go up and down based on real, predictable factors. And the more you understand them, the better you can control your budget and avoid nasty surprises.
This blog breaks down why ad spend fluctuates, and what small businesses can do to stay ahead of it.
1. You’re in an Auction, Not a Marketplace
When you run ads on Google or Facebook, you’re not buying a flat-rate service. You’re entering an auction every single day.
You’re bidding against other businesses who want to show up in front of the same audience. When more advertisers jump in? Prices go up. When things quiet down? You may get more reach for less money.
This is how both platforms work by design. It’s competitive. It’s fluid. And it’s completely normal.
2. Local Competition Drives Costs
Your location, and how competitive it is, can dramatically impact your ad spend.
If you’re a dog groomer in a quiet town, you may have very few competitors bidding for local clicks. Your costs stay low.
But if you’re in a big city and your ad targets homeowners, parents, or business owners? You’re up against dozens of other advertisers, sometimes from other industries entirely (think realtors, landscapers, even local events).
More competition = higher prices. Simple as that.
3. Some Areas Just Cost More to Reach
Geography matters. Targeting zip codes in a high-income neighborhood often costs more than targeting rural or less affluent areas.
Why? Because more advertisers want those premium audiences, and they’re willing to pay more to reach them.
That doesn’t mean you should avoid high-cost areas, it just means your budget needs to reflect the value of the customers you’re going after.
4. What You’re Advertising Affects the Cost
Not all products or services cost the same to promote.
Popular, competitive services = higher costs
Niche offerings = often cheaper to advertise
High-ticket items = higher ad spend, because the potential return is bigger
If you’re selling something everyone wants (and everyone else is selling), you’ll likely pay more for clicks. But if you’re offering something specific and less saturated, your ad dollars might stretch further.
5. Seasonality Always Plays a Role
Like everything in business, advertising has busy seasons. Some are tied to your industry. For example:
Accountants see ad costs spike during tax season.
Landscapers and contractors often see higher costs in spring and summer.
Gift and product-based businesses get hammered during November and December when retail takes over the ad space.
Even if your business isn’t seasonal, the overall ad market can push your costs up or down depending on the time of year.
6. Ad Quality Matters More Than You Think
This one surprises a lot of people.
Google and Facebook don’t just care what you’re promoting, they care how you promote it. If your ad is clear, engaging, and well-targeted, the platform rewards you. Your cost per click goes down. If your ad is poorly written, irrelevant, or sends users to a confusing landing page? You’ll pay more. Sometimes a lot more.
That’s why copy, visuals, and landing page experience aren’t just “nice to have” - they’re directly tied to how much you pay.
7. Audience Size and Targeting Strategy Affect Spend
The tighter your targeting, the more expensive each impression or click can become. That’s because you’re bidding for a small group of people that many others may also want to reach.
On the flip side, broad audiences are cheaper, but risk being less relevant.
The sweet spot? An audience that’s wide enough to keep costs reasonable but focused enough to attract the right leads.
So, How Can Small Businesses Control Ad Spend?
You can’t control every factor but you can make smarter choices. Here are some practical tips:
Plan around seasonality: Adjust your budget expectations during peak months.
Balance your offers: Promote both high-value services and niche ones to offset spend.
Prioritize ad quality: Great copy and visuals don’t just convert, they cost less.
Avoid extreme targeting: Stay focused, but don’t get too narrow.
Keep an eye on competitors: Use tools like Google’s Keyword Planner or Facebook’s Ad Library to stay aware.
Test, test, test: Try different headlines, images, offers, and targeting strategies. See what performs best.
Final Thought
Ad spend isn’t unpredictable, it just feels that way when you don’t know what’s driving it. The good news? Every factor we’ve covered is something you can measure, manage, or prepare for.
Advertising is an auction. And like any auction, the people who understand the rules get the best results. You don’t have to outspend your competitors - you just have to outsmart them.
