Does Google is winning the war of online advertising?
Although it is losing the battle against falling ad prices, the commitment of the multinational to Mobile is allowing him to keep advantage in regard to online advertising.
The Internet giant revealed last Thursday when presented its earnings report, a decline in online ad prices: your cost per click fell 8% over the previous year. That answers that mobile ads cost less per unit and have lower rates of clicks, unlike what happens with desktop computers.
However, mobile ads are increasing. Google has learned to compensate for the lower prices with higher volumes of ads. Now, the number of paid clicks were up 26% year on year, taking an advantage over Yahoo, which reported a jump of 21% at the beginning of the previous week.
According to an article published by USA Today, the number of ads for the multinational California suggest that the changes you’ve made on how they sell advertising have slowed the downward pressure on prices due to an increase in the Mobile advertising traffic.
But at what point the finder decided to make these changes? In its quarterly earnings report, in July 2012, Google reported that its cost per click decreased by 16% over the previous year (2011) concern all of Wall Street and causing a drop in its share price .
Consequently, the company chose to move some chips on his chessboard. Under a new scheme, began to determine where and when to place text ads and video on different platforms. In other words, he removed that ability to advertise online shoppers.
Earlier this year, the Mountain View company and had slowed the annual rate decreasing your cost per click to 4%, thanks to this new method. However, prices in the last quarter, fell at twice that rate. The truth is that Google has managed to cope with a situation that caused alarm on Wall Street.
Search Agency reported that the click through rate of ads in Android tablets fell to 2.3% in the third quarter from 3.2% a year earlier, while. for smart phone users, the rate dropped to 3.1% from 3.9%.
The number of these ads is expanding as more users are opting for mobile devices instead of PC. In the same vein, it is not surprising that mobile advertising revenue soared 145% during the first half of this year to $ 3 billion, compared with the same period in 2012, according to the Interactive Advertising Bureau. And Google, of course, is capturing much of that money-pointing from USA Today.