January CPCs: Seasonally down but up YoY
CPCs in all major sectors dropped on a Month over Month (MoM) basis after the strong holiday season. As expected, Retail CPCs dropped the most MoM by over 27%.
However, CPCs were up in all sectors YoY. With a 21.3% ncrease, the travel sector saw the biggest rise followed by the automotive,retail and finance sectors that saw increases in the 6.5–7.7% range. Unlike 2010 we do not expect to see big YoY CPC increases in 2011. Yet, the YoY CPC trends for January indicate an increasingly competitive marketplace with advertisers continuing to increase their budgets with the economic recovery.
Dr. Siddharth Shah
Director, Business Analytics