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Google have changed the way that advertisers can reach their audiences. No longer can you advertise to specific audience groups exclusively targeting them by the device they use. Googles latest money spinning idea is called Enhanced Campaigns<\/p>\n
Call me a cynic if you want, but I think both myself and our clients liked the way we ran our paid search campaigns more than Google did. We made profit for the clients, we demonstrated value, we \u2018thought outside the box\u2019; but our good friends at Google made less money, so something had to inevitably give. CPC prices have steadily fallen for the last 2 years as the growing tablet and smartphone audiences have given savvy advertisers the opportunity to reach their fragmented audiences more profitably.<\/p>\n
A growing number of quality agencies like ourselves at Ambergreen could clearly see that specific types of search terms and the devices used to convert these search terms were closely aligned; PPC campaigns were being more profitable again. All the tricks we wanted to use made sense again; day parting by device, click to call ads for smartphones, adverts for app downloads all made common sense; b2b search terms converted on tablets like never before after the explosion of sales at Christmas 2012; something definitely had to give.<\/p>\n
So it was inevitable that Enhanced PPC bidding was going to be rolled out to stop good agencies making as much profit for their clients. It comes with the territory, a good idea is exploited and dumbed down to make it easier for everyone to use and the result is a simplified process that is far more profitable for the search provider rather than the brands and agencies.<\/p>\n
Looking forward, the Enhanced Cam\u00adpaigns tran\u00adsi\u00adtion will drive up prices for advertising on tablet devices through the rest of the summer, and the full effect of this change on the mar\u00adket will hap\u00adpen in Q3. We antic\u00adi\u00adpate click prices will rise by 5-\u00ad10% on a YoY basis over the next six months. This increase is par\u00adtially attrib\u00adut\u00adable to Enhanced Cam\u00adpaigns, the other fac\u00adtors being the com\u00adpet\u00adi\u00adtive environment among adver\u00adtis\u00aders and the usual macro-\u00adeconomic conditions as we move toward the festive period.<\/p>\n
\u2018Experts\u2019and Industry bodies suggest that PPC spend on Google will grow 15-20% on a YOY basis.<\/strong> \u00a0We have seen a 15% YoY increase in ad spend despite a fall in overall click prices; this is simply down to the increased number of ads competing for visibility while user numbers continue to grow. As the migration to Enhanced Campaigns continues, click prices will continue to grow as will audience growth and the need for the adverts to be seen. With over a decade\u2019s experience behind us, I can guarantee you that retaining the visitor numbers that you are currently receiving through paid search advertising will cost you more next year.<\/p>\n