Google's PPC Shake Up
23/10/2012
With the shock news that Google’s latest earnings report revealed the internet giant’s overall net profits had fallen by 20%, many people are questioning the continued dominance of Google.
Google PPC advertising is certainly being shaken up currently. Google announced that average click prices had fallen by 15% for paid search, which certainly set the cat among the pigeons.
The main reason for this fall in average cost per click seems to be that many internet users are switching from desktop to mobile to buy online – meaning advertisers can take advantage of cheaper click prices.
This emerging way of buying online means that Google’s mobile business is now generating revenue at roughly $8 billion per year, up from $2.5 billion last year.
This means that Google will start to push PPC advertising for mobiles. If they get more advertisers on board with mobile the cost per click will rise and this will lessen the loss of users move away from desktop.
This emphasis on mobile PPC will mean that Google will value mobile sites more highly. So if your business doesn’t yet have a mobile site or you don’t optimise PPC ads for mobile then now is the time to think about this.
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We can also tailor ads to mobiles and create mobile websites that are designed to be read specifically on Smartphones. For more information contact us today.
