Google revenue increases 12%, Profit up 36% – Enhanced campaigns starting to bite

by Peter Young on October 21, 2013 · 0 comments

Its been a year of change, for both sides of the search landscape. It should come as no surprise therefore to see Google’s Q3 figures reflecting what should be construed as a positive 2013 with Google seeing a significant increase in the volume by which users engage with its ads, mitigating to a certain degree a decline in the amount it charges marketers per click.

The latest figures made good reading for the

  • Revenue grew by 12% YOY to $14.9bn during Q3 (three months to 30 September 2013)
  • Profit grew 36 per cent to $2.97bn.
  • Average CPC  fell 8% quarter on quarter, deepening the 6 per cent decline in the second quarter.
  • Total paid clicks increased 8% quarter on quarter, and a huge 26% YOY

Much of this increase in clicks can be attributed to a significant increase in users accessing Google’s search properties via mobile devices . The migration to enhanced campaigns will obviously be a massive factor behind this as more advertisers engage with mobile as part of the paid search strategies – however for anyone that has been researching into the online marketplace, mobile and tablet usage is significantly up year on year and increasingly taking more and more market share away from desktop. The higher breakthrough of mobile will obviously factor into the reduced average CPC”s as mobile CPC’s are often still lower than those of their desktop equivalents despite the move to enhanced campaigns, though certainly that difference will have become less pronounced in many cases.

With more and more innovation being introduced to the PPC landscape such as shared endorsements, these trends are unlikely to change in the short term. More advanced targeting options such as Remarketing Lists for Search Ads (RLSA) are increasingly allowing more sophisticated campaign planning so certainly the trends behind increased clicks and revenues would be ones I would expect to grow even more during the course of 2014.

RLSA in particular is something I would expect to see greater growth on during the course of 2014, as experience of the product becomes more advanced and learnings thereoff increase significantly during the latter part of 2013 however with Q4 looming one would be a fool to expect to not expect a similar trend at the end of the year

 

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