Enhanced Campaigns Having Only Minor Impact on Overall Trends
RKG, a leading full-service digital marketing agency, released its Digital Marketing Report covering the second quarter of 2013 today. Across its client base, which includes over 40 of the top 500 online retailers, RKG found that Google search spending grew nearly 18% year over year as average cost per click rose 10%.
While many industry watchers are expecting Google’s new Enhanced Campaign model to bolster the search giant’s growth by driving up mobile competition and click costs, RKG results suggest the impacts of the change have been minor to date for larger advertisers.
According to RKG Director of Research, Mark Ballard, "Smartphone CPCs did gain ground on desktop in the second quarter, but that only contributed about one percentage point to Google’s total growth in click costs."
Looking ahead, Ballard noted "While there may be increased volatility over the next month as the mandatory transition date for Enhanced Campaigns passes, there’s no reason to believe a smartphone click will suddenly become much more valuable. Advertisers will need to keep their CPCs in check in order to keep hitting their ROI targets."
Although smartphone traffic continues to be a net drag on total CPC growth, with average click costs 40% lower than desktop, it is still providing a large lift to total paid search click and spending growth. While desktop clicks were down 7% year over year in Q2, smartphone clicks rose 179% and tablet clicks rose 115%.
Mobile Devices Generating a Wide Range in Value for Advertisers
RKG’s data on the average revenue per click generated for different mobile devices offers insight into why smartphone CPCs remain well below those for traditional computers and offers a compelling counterpoint to the notion of device convergence.
As a group, smartphones generated an average revenue per click (RPC) that was 78% lower than desktops. Even within the tablet device class, RPC exhibited a high degree of variance across specific models in Q2. Clicks by shoppers using the iPad were over twice as valuable as clicks from shoppers using the Kindle Fire.
Download the full report at: