CPCs

Tablet CPCs Almost the Same as Desktop CPCs for Paid Search

source: http://www.rimmkaufman.com/blog/rkg-digital-marketing-report-q2-2013-released/10072013/

In the paid search industry, Google’s Enhanced Campaigns have been top of mind for many, with the mandatory transition to the new model less than two weeks away.  While RKG data shows Google having another strong quarter with spending up 18% Y/Y in Q2, the performance impacts of Enhanced Campaigns have been minor to date for larger advertisers.

While smartphone CPCs accelerated from 55% of desktop levels to 60% as more advertisers transitioned to Google Enhanced Campaigns, the impact to total CPC growth was negligible.

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Monday, July 15th, 2013 news No Comments

Smartphone CPCs are 55 percent Lower than Desktop CPCs

Source: Covario’s Global Search Advertising Spend Analysis

The report finds that, for the second straight quarter, CPCs on tablets were higher than on desktops (7%), while smartphone CPCs remained 55% lower than on desktops.

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Thursday, April 18th, 2013 news No Comments

The Scariest Thing About Google’s Earnings (GOOG)

Source: http://www.businessinsider.com/chart-of-the-day-google-cost-per-click-change-2012-4

On Google’s earnings call yesterday, some analysts honed in on a particular trend: declining cost-per-click rates, or CPCs.

Google’s ad revenue is determined largely by two factors: the number of clicks on ads (“paid clicks”) and how much advertisers pay for each click (“CPC”). The first number has been rising fast — it was up 39% in Q1 of 2012, compared with the previous year.

But the second number has started to decline, and was down for the second consecutive quarter (as compared with a year ago).

Google said that the factors driving CPC are very complicated, and include foreign exchange rates, rising mobile usage of Google (where advertisers pay lower prices per click), faster growth in developing countries (where prices are lower), and changes in ad quality all have an effect.

Most analysts seem to agree that CPCs, taken in isolation, are not the best measure of Google’s business. But if you’re looking for a reason why the stock went down today, other than the new class of stock the company announced, this might be it.

chart of the day, google cost-per-click change, april 2012

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Friday, April 13th, 2012 news No Comments

Not 1, Not 2, Not 3, But 4 Display Ads Per Pageview – Shame on You Facebook

Updated May 12, 2012. Freddy Nager, Prof of Integrated Marketing at UCLA sent me a screen shot showing 9 display ads per page. The unscupulosity of Facebook is at an all time high – right up to their IPO.

THANKS Freddy Nager @AtomicTango, Prof of Integrated Marketing, UCLA for the screen grab of 9 and 10 ads per page.

http://atomictango.com/2012/04/20/myspace-facebook-continued/

Updated February 3, 2012.  This is how Facebook is growing ad revenues – SEVEN DISPLAY ADS PER PAGE – EVIL!

facebook ads

 

 

But despite this kind of “cheating” their revenues are decelerating. And there is the “danger” of advertisers getting smart and changing from paying on a CPM basis to paying only on a CPC basis — paying only when they get the click. That would mean Facebook’s revenue could drop off a cliff.

Source: http://www.businessinsider.com/chart-of-the-day-facebook-revenues-are-decelerating-2012-2

Facebook revenues decelerating

 

Updated:  FIVE (count ’em) 5 ads per page – SHAME on you Facebook – the highway robbery gets worse.  Advertisers, quick, go to CPC (don’t pay CPMs any more).

Multiple ads on the same page run up the impression numbers, but artificially depress click-throughs because even if they wanted to, users can only click on one ad at a time. Shame on your Facebook for overtly and systematically robbing advertisers who pay on a CPM basis.

But then again shame on you advertisers who still pay CPMs when you can easily click a radio button to select CPC — Facebook even suggests a range for you automatically (see inset below).

What is the advantage of paying by CPC (cost per click) instead of CPM (cost per thousand impressions)?  Well, remember the old ad industry joke “I know I am wasting half my ad dollars, I just don’t know which half” — well, now you know.  In fact, you now know you are wasting 99% of your ad dollars to wasted impressions that get no action/clicks from users AND you know which 99%.  See infographic below. So stop paying CPMs and start paying CPCs TODAY. Your ad budget will thank you!

Just how DISMAL are  Facebook advertising metrics and benchmarks (click to see )?

According to data from comScore, in Q3 2010, Facebook served 297 billion display ad impressions giving it 23% of the U.S. market for display ads. In digital channels, since there is no longer the physical limitation of time (airtime on TV) or space (area to put ads on dead-tree pulp) companies can create “inventory”  out of thin air and magically increase revenue on the backs of advertisers still willing to pay for impressions. I guess it really is caveat emptor.

chart of the day, share of online ad impressions, nov 2010

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Thursday, November 11th, 2010 analytics, digital, display advertising, marketing 1 Comment

Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

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