Why Your Google Ad Grants Performance Has Declined (And What to Do About It)

If you oversee or manage your nonprofit’s Google Ad Grants account, you’re probably not imagining things. Your traffic has likely declined significantly over the past year, and you’re not alone. Organizations across the nonprofit sector are experiencing the same frustrating trend: clicks have fallen to an all-time low, continuing the downward trend they’ve followed since Spring 2021.

The decline isn’t subtle. April 2025 was the worst month of all time for Ad Grants accounts across the board, and many nonprofits are struggling to understand why their previously successful campaigns are now underperforming. More importantly, they need to know what they can do about it.

As your digital partners, we’ve been monitoring this situation closely across our nonprofit clients’ accounts. Here’s what we’ve learned about the causes of this decline and the strategic adjustments that can help your organization adapt.

The Scale of the Problem

The performance decline affecting Google Ad Grants isn’t a minor seasonal fluctuation. Industry experts tracking dozens of accounts report that average CPC has risen from $2 to $2.50 in 2 months, representing the most significant jump above the traditional $2 bid limit outside of December’s increased budget period.

This means that even if you’re managing your account effectively and maximizing your budget, you’re receiving significantly less traffic than you would have just a few years ago. If you’re running your account well and maxing out your budget, you’re garnering less than a third of the clicks now than you would have 7 years ago, for the same spend.

The impact goes beyond just clicks. CTRs across Google Ad Grants have never been lower, with February 2025 showing average CTRs approaching 6.5% – dangerously close to the 5% threshold that could trigger account suspension.

What’s Causing the Decline

Understanding the root causes helps explain why so many nonprofits are experiencing similar challenges simultaneously.

Algorithm and Match Type Changes

Google changed how broad match keywords work, making them less effective for Ad Grants accounts back in 2023. Some of you may remember the days of the +Broad +Match +Modifiers. Those days are over.

What Used to Happen:

• Your broad match keyword “cancer support” might show ads for searches like “cancer help,” “oncology assistance,” “tumor support groups,” etc.
• This gave you lots of traffic from related but not exact searches.

What Happens Now:

• Google’s broad match has become more restrictive about which searches trigger your ads
• The algorithm is pickier about matching “meaning to meaning” rather than just related terms
• So your “cancer support” keyword shows fewer variations

Quality Filters and Competition

The traffic decline appears to be linked to a new quality filter Google has introduced. While Google hasn’t provided official confirmation, industry analysis suggests this filter aims to ensure ads meet stricter relevance and quality standards, which has reduced how frequently Ad Grants ads are served.

Additionally, the October rollout of Google’s AI Overviews may be reducing available ad impressions. This feature uses AI-generated content to answer question-like search queries directly in search results, potentially reducing the need for users to click on ads.

So, just as organic traffic is declining, so is paid advertising traffic.

Increased Competition from Paid Accounts

Rising CPC, due to increased bid competition as Google increasingly allows accounts to bid over $2, means that Ad Grants accounts face more competition from organizations with paid advertising budgets. This increased competition makes it harder for grant-funded ads to win prime placement.

Immediate Actions to Take

While the broader industry changes are beyond your control, there are specific steps you can take to improve your account’s performance.

Optimize Your Bidding Strategy

All campaign budgets can be set to $329 to give each campaign the best chance to spend the daily budget. Don’t worry about the total—your daily spend will always be capped at $329, making it impossible to overspend.

Focus on getting plenty of conversions per campaign. Conversions power campaign performance, so avoid creating more campaigns than strictly necessary. You must get at least one conversion per campaign per month to comply with Ad Grant rules, but that’s an absolute minimum: You need many more to get good results and train the system properly.

Address Quality Score Issues

Keywords can be assigned a Quality Score between 1 and 10. Within an ad group, higher average scores mean cheaper CPC and better ad visibility. Too many low-quality keywords can flatline an account’s impressions.

In your Keywords report, add columns for Quality Score, Landing Page Experience, and Ad Relevance. In an Ad Grant account, keywords scoring only 1 or 2 will get automatically paused. Consider removing or improving any keywords scoring 3 or 4, and aim for most keywords to score seven and above.

Long-Term Strategic Adjustments

Beyond immediate tactical changes, consider these strategic shifts to build more resilient campaigns.

Expand Your Keyword Strategy

Now is the time to think broader. Consider expanding your campaigns to include additional keywords, adding new campaigns, dynamic headlines, etc. By diversifying your reach, you may uncover new opportunities that aren’t as affected by the broader industry changes.

Focus on highly relevant, mission-specific keywords that align closely with your organization’s work. Ensure you have enough relevant content on your website. Think of your Ad Grants account as an extension of your website’s SEO.

Improve Relevance and Quality

Relevance is more crucial than ever. Focus on refreshing your ad copy and utilizing new ad formats like responsive search ads and relevant ad extensions.

For a keyword to perform well, it needs to have a relevant and aligned landing page. Ensure your landing pages directly address the search intent behind your keywords.

Consider Supplementing with Paid Advertising

For your most critical objectives, consider running a separate paid Google Ads account alongside your free Ad Grants. Unlike Ad Grants accounts, paid accounts don’t have the $2 bid limit, keyword restrictions, or strict compliance requirements that can limit performance.

You can run both simultaneously – using your $10,000 monthly Ad Grants for general awareness campaigns while investing a smaller paid budget in your highest-priority goals like major fundraising campaigns or event registration.

Working with Your Digital Partners

The current Ad Grants environment requires more sophisticated management than ever before. Many nonprofits have found they need to invest in pay-per-click marketing expertise to get the most out of their Google Ad Grant.

If you’re experiencing significant performance declines, consider working with experienced digital marketing partners who understand the technical requirements of Ad Grants management and the unique challenges facing mission-driven organizations.

Your digital marketing should support your mission, not create additional stress. Professional optimization can help you navigate these industry changes while maintaining compliance and maximizing your impact.

Moving Forward

The Google Ad Grants program remains valuable for nonprofits, but the landscape has fundamentally changed. Organizations that adapt their strategies to work within the new reality are positioned to maintain and grow their digital presence.

If you’re concerned about your Google Ad Grants performance or need help developing a strategy to address these industry changes, we’re here to help. As your digital partners, we understand both the technical challenges and the mission-driven context that makes your work unique.