The latest update on Google revenue per click of mobile devices totally increase up to 65% estimated targeting to PC Search Advertisement, Mobile Search Advertisement, according to the online AD spends emarketer predict this year 2014 to 2020 investment of mobile ad spending will increase from 17% to 35%, The cost per click metric measure mostly in a way of RPM earnings will be paid after visitors click for every search ADS.
The cost-per-click, a metric that measures the price paid for the number of times a visitor clicks for every sponsored Ads search on unique visitors. Recently most trending is suggestive of geographic mix analysis, digital device mix, property state mix, as well as the ongoing product and will change policies. While the international revenue cost contributes nearly 58% of the total revenue share for mobile devices accountability for a amazing influx of every parameter queries for Google.
Advertisers must have realigned their ad campaign budgets in favor of mobile devices. Traditionally, CPC cost for mobile ads is lower cost compared to a standard PC. As a result of the average blended CPC (CPC for both mobile and PC standard ) They already declined by 6% year-over-year during the quarter.
However, CPC was flat rate sequentially, since the company has been successfully launch into advanced campaign like digital ad campaign that bundles mobile advertisement with desktop ads to eliminates the difference between PC CPC and mobile CPC.
Going forward, SiteAdWiki expect that the growth in mobile advertising campaign will continue to weigh on CPC.
Most High Search Ad Revenue Search Engine on Desktop, PC
AOL Revenue per search x 1,000 = $50
BING Revenue per search x 1,000 = $25
Communtiy Revenue per search x 1,000 = $14.4
Yahoo Revenue per search x 1,000 = $10.7
BAIDU Revenue per search x 1,000 = $9.68
Google Relevant Benchmark up to $666.00 price for every community
CPCs Can Fall Even As Mobile Click Share Rises
RKG Co-founder and Chief Marketing Strategist, explains how, as mobile gains more click share, it’s possible to see declining CPCs overall even if mobile CPCs are in fact increasing. Here’s Michie’s illustration of how this can happen:
Hypothetical example, Year 1:
Desktop CPC = $1 and comprise 90% of traffic
Mobile CPC =$0.20 and comprise 10% of traffic
Average CPC for Google = ($1 * 0.9 + $0.20 *.1) = $ 0.92
Desktop CPC = $1.10 and comprises 70% of traffic
Mobile CPC = $0.30 and comprises 30% of traffic
Average CPC for Google = ($1.10 * .7 + $.30 * .3) = $0.86
Youtube Boosts Ad Volumes,
In our pre-earnings note, we mentioned that we would be closely watching YouTube because it caters to the rapidly growing online video ad space. During the earnings call we got some encouraging metrics from the management, which makes us confident about YouTube as an essential driver of revenue growth going forward. The management stated that paid clicks in YouTube engagement ads like TrueView, and other owned and operated properties like Maps and Finance, increased approximately 33% over the second quarter of 2013 and increased approximately 6% over the first quarter of 2014. The primary reason for Google’s dominance in the video ads industry is its reach among users with nearly 150 million unique viewers as of May 2014. We think that YouTube is important because, according to our estimates, this division constitutes just under 10% of Google’s value. Revenues from this division were around $3.7 billion in 2013, and we think that they will continue to grow and reach around $18 billion by the end of our forecast period.
As YouTube gets more Impressions,
The cheaper CPCs than Google Search, that would drive the averages down. However, if YouTube was static in impressions and the growth of impressions was coming from pure search, then the average CPC would go up. In some areas, like local businesses, they are often still increasing in competition, so their CPCs are climbing faster than very mature industries that are bidding by pure ROAS metrics and CPCs are fairly flat. ”
Geddes adds, “Since Google doesn’t break out mobile by search, apps, and non-app display, there’s no way of knowing if these mobile numbers are good or bad. If you saw mobile CPCs declining for search for local businesses, that would be a good indicator that Google is having mobile problems. If you saw that average CPC was declining because there were more app impressions but search was increasing, then you’d know Google is doing well.Similar effects can be seen by advertiser make, says Geddes, “If all of Google’s revenue came from direct response retailers, mobile would drop as the conversion rates are lower on mobile devices than on desktops. If Google’s revenue all came from service-based local businesses, then mobile CPCs would climb dramatically as mobile converts much better than desktop clicks. So without the context of their advertising base, average CPCs don’t give you a good picture of how Google is doing in these respects.”
How to Calculate Mobile AD Revenue?
We’ll start with the eCPM formula, which we’ll pick apart to calculate earnings. If you remember the eCPM equation, it looks something like this:
eCPM = earnings / impressions
To extract the mobile ad revenue formula from this, simply rearrange the equation by multiplying impressions and eCPMs: Revenue = eCPM x impressions mobile ad earnings equation
|Mobile Revenue Calculation Formula|
That’s easy enough.
You can extract a more specific revenue equation by breaking down the equations for impressions and eCPMs. Impressions can be found by multiplying total ad requests by the fill rate. And multiplying the click-through rate, install rate, and bid price determines the eCPM.
What you get from this is: Revenue = ad requests x fill rate x CTR x IR x bid x 1000
|Mobile Ad Revenue Equation|
Note: that CTR x IR calculates the revenue you might generate from a CPI advertiser. To calculate revenue from a CPC advertiser you would simply remove IR from the equation.
By breaking down the formula for revenue this way, you can clearly see why any increase or decline in each metric outlined in the revenue equation will influence the revenue you have been or could be earning.
For instance, If you know that bid prices tend to decline when advertisers tighten their ad budgets post-holiday season, you should now understand why eCPMs and ad earnings will decrease after the holidays. Or you might finally have a better idea for why developers that are revenue conscious will favor mobile ad networks that serve high fill rates.