Google reported earnings that beat the street yesterday, yet some are are pointing to lower CPC’s with a cautionary tone. As it turns out CPC’s are down about 8% year over year. I expect that to fall further – yet im still bullish on Google and so is everyone else apparently:
So Why Are CPC’s Down?
- Mobile web traffic is up considerably at the expense of desktop traffic. Some research shows a combined 20% market share for mobile/desktop in Q3 of 2013. Web-Op manages several sites where 30% or more of organic traffic is coming from mobile devices and tablets. Most small web marketers (adwords‘ bread and butter) still haven’t adapted to this shift. Its not just small advertisers either.
- Two thirds of Fortune 100 websites don’t serve mobile friendly versions
As Google applies more and more pressure (in the form of threatened penalties) on companies to produce mobile friendly formats – mobile traffic should perform better and better.