Search Engine Watch posted an article about slowing growth in the paid search segment. Its interesting that part of the lower CPC's comes from lower mobile clicks. When we interviewed Donny Simonton from Voodoo we asked him if there were lower payouts on clicks from mobile.
We usually classify traffic into 4 categories, desktop, tablets, smartphones, and dumbphones. Desktop and Smartphone traffic are usually on par with each other as far as RPM goes. Tablets usually have the highest RPM and Dumbphones have the lowest.
Mobile traffic has definitely been increasing since the beginning of the year, but desktop traffic has been staying very steady as well. I would have expected to see a drop in the percentage of desktop traffic when there was an increase in mobile traffic. But overall, the numbers continue to go higher month over month.From the Search Engine Journal article:
Slowing growth and lower CPCs in paid search don’t bode well for companies like Google, though advertisers are seeing a higher return on their paid search investment, according to recent reports.
U.S. search spend grew by 11 percent Year over Year (YoY) while ROI improved by 26 percent, according to Adobe. They found that Google’s CPCs fell 10 percent over the last year and attribute the loss to an increased volume of less expensive mobile clicks. It’s a problem Google knows all too well; one that was a hot topic during their recent quarterly earnings call.
Adobe expects Google’s CPC losses to turn around next quarter, explaining, “The cost per click (CPC) downward trend caused by mobile traffic appears to have bottomed out and is projected to rise in Q4 due to seasonal trends and changes to the Google Shopping model.”