Source:
A recent study by WordStream, a company that provides internet marketing tools to increase profitability of search marketing campaigns, showed that Google is brought in about $100M daily through its AdWords platform in the third quarter. This equates to an astounding 5.5B impressions daily impressions served on Google’s Display Network. The article cited, “Average click-through rate (CTR) in Q3 on Google search came in at 3.5 percent, meaning advertisers paid for 192 million clicks daily. On the display network, CTR was only 0.18 percent, resulting in 45.8 million clicks per day. The search figure is 12.4% lower than Q2, and the display number has risen 13.8% in the same period. WordStream found that the average CPC on Google search was $0.53, and it was $0.35 on the display network. Both networks declined since Q2, with search dropping 16.5% and display going down 18.2%.” Despite declines in both CTRs and CPCs, the article mentions that “gains in ad impression volume and clicks more than made up for these declines for Google”. It will be interesting to see whether Google is able to attract more advertisers given the lower CPCs as this could be seen by advertisers as a potential lower cost of entry, thus more budget-friendly.
A recent study by WordStream, a company that provides internet marketing tools to increase profitability of search marketing campaigns, showed that Google is brought in about $100M daily through its AdWords platform in the third quarter. This equates to an astounding 5.5B impressions daily impressions served on Google’s Display Network. The article cited, “Average click-through rate (CTR) in Q3 on Google search came in at 3.5 percent, meaning advertisers paid for 192 million clicks daily. On the display network, CTR was only 0.18 percent, resulting in 45.8 million clicks per day. The search figure is 12.4% lower than Q2, and the display number has risen 13.8% in the same period. WordStream found that the average CPC on Google search was $0.53, and it was $0.35 on the display network. Both networks declined since Q2, with search dropping 16.5% and display going down 18.2%.” Despite declines in both CTRs and CPCs, the article mentions that “gains in ad impression volume and clicks more than made up for these declines for Google”. It will be interesting to see whether Google is able to attract more advertisers given the lower CPCs as this could be seen by advertisers as a potential lower cost of entry, thus more budget-friendly.
I thought it was interesting to note the discrepancy between
search and display metrics as the CTRs for search are much higher. It makes sense to think that search would be
higher as consumers are actively seeking a particular item, service, etc. and
therefore are more likely to click on ads relevant to their search – maybe they’re
conducting research before purchasing something and want to gather as much
information as possible, or maybe they’re simply weighing options. Whereas with display, the relevancy of the ad
may not always be timely. For example,
if I was looking to book a vacation for October and was searching for
destinations in September and never cleared my cache, I may be served airline
or hotel ads when I’m searching on the New York Times website (ok, maybe more
like BravoTV.com…) when
I’m no longer in the market to book a vacation.
While I may click if there’s an offer, I likely wouldn’t as it’s no
longer that relevant for me. Now that I’m
more versed in search and display, I have become increasingly more aware of the
ads I’m being served. A few weeks ago
for a class, my team and I were studying the Westin brand. After searching the web for historical
information on the brand, including past advertisements, I was then served a
Westin ad a couple sites later. For a
split second, I thought “Wow, what a complete coincidence!!”, but quickly
realized I was just cookie-d and served a display ad in a very timely fashion :)
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