Do flat CPCs Indicate a Drop in Advertising Spend?
As we are preparing our analysis for our upcoming State of Digital Marketing quarterly report, we noticed that CPC trends for most verticals were flat YoY and quarter on quarter (QoQ). This is a continuing theme from last quarter where we noticed a similar trend. CPCs in the finance category are a little volatile on a YoY basis as CPCs in 2012 were higher than 2011 for January and February, but were lower in March.
Do flat CPCs indicate a drop in advertising spend? Not necessarily. As we saw last quarter, backed by growth in query and click volume, spend increased 14% YoY despite flat CPCs. We are seeing similar trends for Q1. Stay tuned for our report where we will provide a full analysis on this data and more.
Dr. Siddharth Shah