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Google CPC prices

  • 08-03-2012 04:10PM
    #1
    martyoo
    Closed Accounts Posts: 872 ✭✭✭


    Anyone know why Google CPC prices are falling over the past year or so? There certainly hasn't been a drop in competition over the same period. At least not in the industry that we are operating in.


Comments

  • #2
    Stevokenevo
    Registered Users, Registered Users 2 Posts: 111 ✭✭Stevokenevo


    There will always be fluctuations in any industry, especially if it's prone to heavy seasonality.

    Theres also lots of other reasons, based around the fact that you are usually paying whatever is necessary to beat your nearest competitor - e.g. a departure of a competitor that was driving up the overall averages with high bids would have an immediate effect on your averages.

    It's a good idea to take a look into exactly which terms are decreasing from a CPC point of view - there's the chance that advertisers may be moving away from (or bidding lower on) generic terms in favour of long-tail terms or vice-versa, thus decreasing the auction intensity.

    Also, advertisers can often see lower average CPCs on Mobile Devices, so unless you have those targeted through a separate campaign, it could be bringing down the average overall - segment by device in the dimensions tab to get a closer look at this.


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