the march of mobile brand cpcs on google, according to merkle

Stevie Peacock | 10/08/16

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It’s always good in business to keep your eyes finely focused on the graphs, trends and data reports, relevant to business marketing.
Things change and not always in the way a business might expect. After all, marketing is usually the biggest spend of most companies and if you can reign in at different times of the year and still win, you can increase your margins and make a difference. As the well-known Tesco saying goes: every little helps.
In the last week of June 2016 there was a distinct change being seen in smartphone Cost Per Click (CPC’s). This wasn’t being reflected in a similar trend in desk top or tablets.
The average cost for brand keywords were displaying a marked increase above normal levels for mobiles.
The news was relayed in a blog post by a Senior Research Analyst at the privately owned performance marketing agency, Merkle. The agency specialise in data-based marketing solutions and the blog was written by Andy Taylor. He reported that the median Merkle advertiser had noticed a significant rise in CPC for mobiles of around 25-30% which is considerably higher than the figures studied in early May.
In looking at the graphs for tablet and desktop, very little had changed and normal fluctuations that one would expect were still in evidence.
In addition, mobile traffic share for Merkle advertisers also remained at an average steady level during the same period.
If we go back to records held during the first quarter of 2015, a slightly different story unfolds. There was a sudden leap in brand CPCs across the full range of devices. As the end of the second quarter approached, compared to the previous 4 years, there was a 22% higher jump for brand CPCs.
It’s time now for businesses to look out for similar increases in their accounts and think about lowering their mobile brand bids over time.
Merkle report that that is exactly the practice many brands put in place last year in response to similar CPC increases.
It’s an advertiser’s market too, not just the buyers.

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