Decrease from TrueVue

May 21, 2015

The article on Business Insider titled Google Has a New and Unexpected Explanation for Its Falling Ad Rates places the blame on Youtube’s “TrueView” video ads. For some time there has been concern over Google’s falling cost-per-click (CPC) money, the cash earned each time a user clicks on an ad. The first quarter of this year has CPC down 7%. The article quotes outgoing Google CFO Patrick Pichette on the real reason for these numbers. He states,

“TrueView ads currently monetize at a lower rate than ad clicks on Google.com. As you know, video ads generally reach people earlier in the purchase funnel, and so across the industry, they tend to have a different pricing profile than that of search ads,” Pichette explained. “Excluding the impact of YouTube TrueView ads, growth in Sites clicks would be lower, but still positive and CPCs would be healthy and growing Y/Y,” Pichette continued.

It is often thought that the increasing dependence on mobile internet access through smartphones is the reason for falling CPC. Google can’t charge as much for mobile ads as for PC ads, making it a logical leap that this is the area of concern. Pichette offers a different view, and one with an entirely positive spin.
Chelsea Kerwin, May 21, 2014

Stephen E Arnold, Publisher of CyberOSINT at www.xenky.com

Written by Stephen E. Arnold · Filed Under Google, Management, Marketing, Mobile, News

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Stephen E. Arnold monitors search, content processing, text mining and related topics from his high-tech nerve center in rural Kentucky. He tries to winnow the goose feathers from the giblets. He works with colleagues worldwide to make this Web log useful to those who want to go "beyond search". Contact him at sa [at] arnoldit.com. His Web site with additional information about search is arnoldit.com.