Accrording to VentureBeat, Adobe’s ad division said CPCs were already up 6 percent last quarter. The Search Agency said that click prices were up a massive 21.2 percent, quarter over quarter. And Covario said that CPCs jumped 7 percent.
So where Google reported Q2 earnings last week in came as quite a shock that CPC declined 6% year over year for the company.
What is driving this decrease? Difficult to say without insider knowledge of Google's revenue generating ad engine but the speculation is that this is a direct result of the company migration to an integrated platform to replace Adwords earlier in 2013.
This new platform, called Google Enhanced Campaigns essentially integrates mobile and desktop search into one pricing model. Customers are now able to geographically target their marketing campaigns and also assign relative weights or multipliers to desktop and mobile.
While the additional exact driver of the CPC decline is unclear one thing is likely, this is being driven my mobile where conversion rates and prices are significantly lower than desktop.
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