CPC was up 27% YoY, and did not see the typical decline from Q4 into Q1. In fact, in a lot of cases, CPC has increased since the 2016 holiday season. As expected, much of the overall increase can be attributed to more aggressive competition on mobile . More surprising is the CPC increase that is coming from desktop, especially as both impressions and clicks on desktop devices are decreasing.
Are search ads a waste of money? This isn’t to say that big brands should never invest in search advertising, but they should bear in mind that search ads work best when they alert consumers to something they’re not already aware of. For instance, Gap might forgo search ads that would pop up when users search the company’s name or its best-known categories, such as jeans, and instead pay to appear in results for categories it isn’t commonly associated with, such as shoes. Continue reading