Though the Q4 reports of 2019 show that Google’s revenue is up at 45.8 billion USD, not all periods during its journey has been able to record such gainful profits. Since most of Google’s earnings come from ad revenues, brands and marketers need to be conscious of what the effects of a dip in Google’s revenues can mean to them.
A few years back, in 2012 to be precise, the earning reports of Google were accidentally out which had the market going frenzy within hours. Reason – the report showed a dip in Google’s earnings. Two things that a marketer needs to remember in the context of Google earnings are:
- Google is one of the top tech companies in the world it ranks third in terms of most valuable public companies of the globe.
- Advertising through its Search Engine is its main source of revenue.
What does a fall in earnings for Google means for the PPC industry?
Taking into account that the maximum earning of Google comes from PPC ads, a decrease in the cost-per-click is a cause of alarm for brands and marketers, even if as an immediate effect it is good for them because they need to pay less to Google. CPC (cost-per-click) is the money that advertisers pay Google each time an online user clicks on their ads. It is important to remember here that though the value of CPC decreases, Google still manages to earn a decent amount because the number of click ads has increased.
Reason for fall in CPC – one of the main reasons behind the fall in the average CPC has been attributed to the fact that most users now are using their mobiles to click on search ads as compared to using the desktop. Mobile ads are cheaper than desktop ads. This means that mobile advertisements are the growing focus of Google and it is highly likely that the company shifts away from the desktop advertising genre in the coming years.
In the past few years, the emphasis on mobile optimized and responsive sites has been a crucial priority of Google. So, what does it all mean for the PPC marketer?
- Marketers now need to be pushing for mobile ads more vociferously with their clients. They need to educate advertisers about the shift in the paradigm of Google and the reason behind it. What becomes crucial is that brands invest more in getting their websites optimized for mobile browsing so that the users can get a quality experience.
- The other important aspect that advertisers need to note is that they need to make their PPC ads tuned for working across multiple channels – this means that a user who sees an ad on the mobile can be encouraged to purchase the desktop.
- This paradigm shift is also going to be highlighted in the context of the growth and introduction of more high-end mobile devices. Advertisers need to accordingly sync their PPC campaigns so that the ads are optimized for such high-tech devices.