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The rise of branded CPC in the cosmetics market
branddi ·
What if one of the most stable metrics in paid media was starting to change behavior?
Brand CPC, which represents the amount paid for each click on ads triggered by the company's own name, has always been analyzed within a specific context: searches with high brand recognition and clear user intent, which normally kept costs under greater control.
In the cosmetics market, however, this dynamic has been reversing. Branded terms began to be competed for by more advertisers, marketplaces increased their presence in auctions and parallel campaigns began to put pressure on costs. As a result, the amount paid per click increases in searches that are already based on an existing demand.
To understand why brand CPC is increasing and what factors explain this movement in the cosmetics sector, check out the complete guide below!
What does Branddi's data show about the first half of the year?
The first half of the year is usually a real field of competition for consumer attention in the cosmetics market, and the data confirms this. Analyzing beauty brands served by Branddi between February and June 2024 and 2025, two movements become evident and help to explain the increase in brand CPC during this period.
The first is the growth of active competition. On average, the number of advertisers competing for keywords related to the analyzed brands is 22% higher in the first half of the year when compared to the second. src="https://cdn.prod.website-files.com/6689757856399456a21b0ba3/69ca6f1e888293e512ceeb59_6a75b817.png" width="auto" height="auto" loading="auto">Graph showing 22% more active advertisers in the 1st semester in the beauty market.
It is precisely at this stage that brands, resellers, affiliates and even indirect competitors begin to anticipate major dates in the commercial calendar, winter campaigns and preparations for the second annual sales peak. sudden, what the data shows is a gradual escalation. Purchase intention increases, driven by seasonal campaigns and greater search volume, and advertisers start to invest more to ensure visibility in searches.
Who is inflating brand CPC?
Brand CPC grows progressively, almost imperceptibly. If we compare March with June in the two years analyzed, the average points to an increase of 31% in the cost per click. Who is behind this inflation:
- Opportunistic resellers, who buy terms from competitors to capture demand already ready to convert;
- Unauthorized partners, who start to compete directly with the brand itself in searches;
- Marketplaces, which advertise the brand and redirect traffic to third-party offers;
- Disorganized internal campaigns, which end up cannibalizing each other and increasing costs without generating real gains in visibility.
What is the impact on brands?
Increasing brand CPC affects how much a company needs to spend to sell. If the cost per click increases, the brand starts paying more for media to attract the same number of visitors.
Searches that would be cheaper and more efficient no longer generate the same return. More advertisers begin to compete for the brand's keywords, which makes the auction more competitive and increases the cost necessary to continue appearing in the top positions.
In short, the biggest impacts of increasing CPC for brands:
- Media budget runs out faster, making it difficult to maintain active campaigns for the entire planned period;
- Cost per conversion increases, as each sale starts to require more investment;
- Less efficiency precisely at moments when should generate more profit;
- The feeling that investing more in media does not bring proportional growth in results.
The problem intensifies on seasonal dates, because periods like Mother's Day bring together consumers ready to buy, more companies advertising at the same time and greater market acceptance of more expensive clicks.
Did you like to understand what is behind the increase in brand CPC in the cosmetics niche? Monitoring who advertises, how the auction evolves and where the brand loses efficiency is essential to protect margin and predictability of results.
If you want to find out where there are risks and what protections can preserve the efficiency of your digital presence, talk to the Branddi team and request a media audit.