Pay Per Click Advertising Blog

What Google's 2014 Q1 Earnings Means For Pay Per Click

Jason Thomas - Wednesday, May 21, 2014

"We completed another great quarter. Google's revenue was $15.4 billion, up 19% year on year", said Larry Page, CEO of Google.


Almighty Google has increased its revenues to the tune of billions.  I suppose with a company as vast and innovative as Google you would expect nothing less.  But what do these first quarter numbers mean for pay per click marketing?  

Increase in spend:  

AdWords spends increased 21 percent Q1 2014, to more than $10 billion.

This means that more people are using AdWords and the people already using AdWords are increasing their budget.  If you search for almost anything on Google nowadays you can easily see how competitive the AdWords market has become.  Along with new companies joining the fray, the old ones are taking a new look at their campaigns, and beefing up their budget.  

CPC is down:

Cost Per Click has dropped 9 percent from Q1 2013

Although a lot of advertisers are scratching their heads at this one, comparing this stat to their monthly budget, there is a reason CPC has dropped.  Google has been consistently rolling out new ad formats, changing the CPC landscape.  For a time Mobile CPC was less than traditional ads on Google sites, much to the happiness of the advertiser.  Now, thanks to enhanced campaigns, Mobile has begun to catch up with traditional ads in terms of CPC.  Product Listing Ads, however, have a lower CPC.  PLA’s are what is reflected in the drop in CPC.  By the way, PLA’s are a great option for online retailers, who see the benefits of an extensive AdWords campaign for a lower CPC.  Eventually the CPC will begin to match the other ad formats but we know that wild and crazy Google will release something new and snazzy then.   

Interesting Stat: 

68 percent of Google’s increase in revenue from last year came from AdWords on Google Sites (search network), with only 3.4 billion coming from display network.  Also, it is noteworthy that 70 percent of the revenue from the display network is going to the publishers.  

Overall?

It’s fun to look at the statistics and analyze the trends.  For people like us, who handle AdWords accounts every day, this information is vital to the health of our AdWords accounts and their budgets.  We can see more clearly where to go and what to do for the best results.  For Advertisers this information can give you the upper hand when assessing the goals for your pay per click marketing campaigns and how to get the best results for your business model.  

If you aren’t using AdWords, get involved with a professional pay per click management firm.  If you are using AdWords, pay per click smarter by getting with a PPC management firm that gives you exact reporting frequently.   

This blog written by Jason Thomas



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