You’re about to see some new ad fees on your Google advertising invoices, and this is why. If you’re running ad campaigns on Google, it’s important to know that they’re rolling out these new fees in certain countries, and Canada is one of them. Starting October 1, 2024, a new 2.5% surcharge, known as the Canada DST Fee, will be added to all ads served in Canada. Meta hasn’t mentioned it yet but, they’re likely to follow suit. Whether your ads run locally or nationally, this fee is something you’ll want to keep on your radar. To help you better understand why this fee has come about, let’s break down what this means for your campaigns and how you can stay ahead of the game and on budget.
Google’s New Ad Fees: The Basics
Starting October 1, 2024, Google is rolling out some new fees that could impact any business running ads, especially if you’re targeting audiences in specific countries. The big one to know about for Canadian advertisers is the Canada DST Fee—a 2.5% surcharge on all ads served in our country. This fee will show up on your Google Ads invoices or statements as a separate line item.
Why Do These New Ad Fees Matter?
This change isn’t just a small tweak—it’s a result of Google complying with local digital services tax (DST) laws. What does that mean for your business? In short, your advertising costs are going up, even if your business isn’t based here. If you’re targeting Canadian audiences, this 2.5% fee is an extra expense you’ll need to budget for.
Breaking Down the Numbers For You
- 2.5%: This is the rate of the Canada DST Fee, starting October 1.
- When It Applies: The surcharge applies to any ad impressions or clicks served within Canada, regardless of where your business is located.
- How It’s Charged: The fee will be added to your monthly invoice or statement. If you’re on automatic payments or monthly invoicing, expect to see it at the end of the month. For manual or prepayment accounts, you might notice the charge after your payment is fully spent.
- Where You Can Find it: You can see the surcharges in your Google Ads account, either in your monthly invoice or statement as a separate line item per jurisdiction, or on the “Transactions” section of your Google Ads account.
What Are These Ad Fees All About?
Google says they’re adding these fees to cover the costs of following new digital services tax laws. The surcharge will be listed as the Canada DST Fee on your invoice, but don’t forget—other taxes like HST, GST, or QST might apply too, depending on where you are.
Here’s an example: If you have a $100 budget, that 2.5% DST Fee means you’ll be billed $102.50 (plus any taxes). If you pay manually, and your balance is $100, after the DST fee is deducted, you’ll have $97.50 left for ads less the tax.
How Does This Affect Your Google Ad Budgets?
For advertisers, this means higher costs and a need to rethink your ad budgets. With these new fees, it’s more important than ever to keep an eye on your ad spend and ROI—every little bit counts when you’re trying to make the most of your marketing dollars. Calculating these extra fees into your daily ad budget will keep your bottom line accurate and your books on track so be sure to keep your accounting people informed.
Changes to Watch For In Google Ads After October 1
- Impact on Budgets: Keep track of how these surcharges affect your advertising budgets and the return on investment (ROI) for your campaigns.
- Potential Expansion: As other countries implement their own digital services taxes, it’s possible that Google will introduce similar surcharges in more regions. Staying informed will be key.
Advertisers will need to keep a close watch on their campaign settings to manage these new costs effectively. With the October 1 deadline approaching, now’s the time to adjust your strategies. By understanding how these surcharges will impact your ad spend, you can stay ahead of the curve and keep your marketing efforts running smoothly.
Keeping Track Of Google Changes While Working To Improve Your ROI Is What We Do. We Can Keep Your Advertising Campaigns On Track
As Google continues to roll out changes like these new ad surcharges, it can feel like there’s always something new to keep track of. But that’s where we come in. At 3SIXTY Marketing Solutions, we stay on top of every update, tweak, and fee change so you don’t have to. We’re your go-to Google ad experts, ensuring your campaigns run smoothly and effectively, no matter what curveballs come your way.
With these new fees, it’s more important than ever to manage your ad spend wisely, and we’re here to help you do just that. So, rest easy knowing that while Google changes the rules, we’re here to make sure you stay ahead of the game. We’re happy to be your Google ad experts, call us at 647-250-1494, or book a free consultation today. Let’s keep your campaigns thriving!
