Marketers are spending more on paid search clicks than organic, probably because mobile is dominating search and the smaller screens mean results pages show mostly paid ads. That’s a huge part of the reason Google’s aggregate paid clicks increased 52 percent in Q2 and 61 percent on Google’s own properties, reads an Adweek article.
Summarizing and analyzing Monday’s earnings call from Google’s parent company, Alphabet, Adweek reported that the results exceeded Wall Street’s expectations, with $22.67 billion in advertising revenue, up $3.53 billion YOY.
Adweek interviewed James Cakmak, an analyst with Monness, Crespi, Hardt & Co.:
“We believe there is an ever-growing need for paid search advertising given consumer consumption patterns on mobile, thereby limiting the effectiveness of organic results. Said another way, we see the future as increasingly driven by search engine marketing (SEM) and decreasingly search engine optimization (SEO). Hence, the wind is very much at Google’s back.”
[Author’s note: SEM includes SEO, in many marketers’ definitions. Cakmak is referring to SEM as paid and SEO as organic — as distinct entities.]
Adweek’s Marty Swant notes in his piece that even as Google’s paid search revenue is increasing, it’s decreasing its per-click costs to advertisers. Marketers pay 23 percent less per click on the aggregate PPC and cost per click on Google’s properties fell 26 percent, he writes.
What do you think, marketers?
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