CPC Cost Increases Slow on Desktop

30th September 2015

The pace at which CPC advertising rates are increasing has slowed over the past year by 9% according to new data from Adobe.

The data for mobile, however, shows a scramble for CPC advertising on mobile platforms as businesses become more convinced of the influencing and sales opportunities of mobile devices. Organic traffic drops have also driven the increase in interest in paid traffic for mobile eyeballs from mobile unfriendly sites that were affected by “mobilegeddon” in April.

Despite the move towards cheaper mobile ads, costs overall have edged up by around 4% in Europe and the Middle East when viewed against quarter 2 of 2014.

 

Mobilegeddon and Attempts to Win Back Traffic

As mentioned, traffic did fall away from sites that offered a poor mobile experience, however, the poor mobile experience offered by these brands seems to be reflected in their paid advertising.  The report reveals that it now costs more to get less traffic.

The costs have increased with the increased competition, but overall customers are clicking less often on the advertising. Whilst obviously, the non-clicked advert is not paid for, the competition has increased per click costs for the remaining clicks.

Cost vs Click Through in CPC

The data in the report was compiled from 489 billion digital ad impressions and CPC advertising across platforms including Google, Yahoo and Bing as well as regional players such as Baidu and Yandex.