CPC Growth Rate Goes Down, Not On Smartphones

According to Adobe’s new Digital Advertising Report, CPC growth is declining in a steady speed, but not in the case of smartphones. Adobe has looked at more than 489 billion digital ad impressions; states over three years composed anonymized, aggregated data. CTR growth has been rising consistently, while CPC growth has taken a drop over the past year, especially between Q4 & Q1. Presently, there is around 33- point gap between the two, in spite being equal last year.

Wherever, it comes to smartphones that gap is inverted. CPC growth is increased by 16% and smartphone CTE has declined by 9% YoY, impacting in a 25-point gap. Adobe research says that ‘mobilegeddon’ was an essential element in the growth of mobile paid search. While the algorithm change looked fluctuating at the time, organic traffic is 10% down among the websites with low mobile engagement, says report.

cpc 3

Another factor that contributes to the continuous growth of CPC on smartphones is ‘Price’. Clicks are prominently cheaper than desktop click but it won’t last for longer time, expects Tamara Gaffney, principal analyst for Adobe Digital Index.

“Mobile advertising’s inability to perceive value, causes a mobile search click to be valued 37% less as compared to a desktop search click, says Tamara Gaffney. Incremental and conservative approaches to handle “mobile stress” aren’t enough to fill the gap. Innovative and disruptive modifications will be required in sense to drive future business success on both the marketer and publisher side.

cpc 1

On Facebook, which receive 12% more click in spite half the impressions YoY, the breakdown is more ranged with the global trend. While, the social media giant’s CTR has grown by 99% YoY, the CPC growth has remained steady. This number dwarfs Google’s growth that is 24% YoY.

cpc 2

As per Adobe, Facebook’s success is a clear impact of better targeting. 51% U.S. consumers think Facebook ads create genuine interest as compared to YouTube ads. Facebook has also reduced the number of ads it displays to attract the large number smartphone users. Gaffney adds, Google is starting to lose its title of marketing vehicle and it’s mainly because they are not receiving as many clicks on the global display ads.

Even though Google continues to control the search market, other search engines are gradually moving ahead to lead. While Google holds 65% of global search spend share, along with 61% in North America, Bing and Yahoo’s mutual spend has augmented to 4% YoY. Russia’s Yandex and China’s Baidu are on their way towards growth; also they have started to exceed their respective provinces.