CPM and CPC Pricing Trends by Augustine Fou

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Continued downward pressures on CPMs and CPCs are visible, and additional evidence comes from the 4th straight decline in CPCs for Google.

Continued downward pressures on CPMs and CPCs are visible, and additional evidence comes from the 4th straight decline in CPCs for Google.

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  • 1. CPM and CPC Pricing Trends Dr. Augustine Fou http://www.linkedin.com/in/augustinefou October 19, 2012.
  • 2. CPM Pricing Benchmarks Display ad eCPM $1.06 March 2013 Mobile ad eCPMApril 2013 2013 Source: Turn, $0.72 March Social ad eCPM $0.24 March 2013 Video ad eCOM $9.99 March 2013 October 19, 2012 2
  • 3. Display Ads October 19, 2012 3
  • 4. Display Advertising Big Portals Large audience Publisher/portal has more power CPM 10’s of dollars CTR 0.1% Ad Networks Facebook Lots of long-tail small websites Massive number of impressions Advertiser has more power “Junk” quality and super-low prices 1’s of dollars 0.01% 10’s of cents 0.001% Shift allocation to get more impressions or lower cost October 19, 2012 4
  • 5. Display Ad Global eCPM Display ad CPMs are in the $0.10 - $0.80 range Source: Turn, June 2013 October 19, 2012 5
  • 6. Desktop vs Mobile eCPM Source: KPCB Internet Trends 2012 October 19, 2012 6
  • 7. Display CTRs by Category Source: MediaMind, April 2011 October 19, 2012 7
  • 8. Mobile Ads October 19, 2012 8
  • 9. Mobile Ad Global eCPM Mobile ad CPMs are in the $0.10 - $1.00 range Source: Turn, June 2013 October 19, 2012 9
  • 10. Mobile Ad CPM Trends Source: MoPub Q1 2013 iPhone CPM $0.88 iPod Touch CPM $0.96 iPad CPM $1.16 Android tablet CPM $0.53 Android CPM $0.50 10
  • 11. Mobile Ad CTR Trends Source: MoPub Q1 2013 iPhone CTR 1.7% iPod Touch CTR 2.2% iPad CTR 2.5% Android tablet CTR 1.0% Android CTR 1.1% 11
  • 12. Search Ads October 19, 2012 12
  • 13. Search Ads, SEO Paid/ SEM Organic For long tail, descriptive keywords For brand terms and expensive keywords CTR 1 - 5% 13 - 21% CPC $1 - $10 FREE Source: SlingShot SEO Shift allocation to get more clicks at lower cost October 19, 2012 13
  • 14. Search CPCs by Category Source: TBG Digital July 2012 October 19, 2012 14
  • 15. Search CTRs (natural, paid) Most users click on natural search results 15-25% of clicks 1-9% avg CTRs 75-85% of clicks 13-21% avg CTRs Source: go-Digital Blog, July 2012 Natural results have 10x the click through rate of paid ads
  • 16. Impact on Google Source: BusinessInsider Google Earnings Call October 18, 2012 1. Aggregate paid clicks growth declined 2. Cost-per-click growth remained negative for 4th straight month October 19, 2012 16
  • 17. GOOG: -9% on earnings 51% higher revenue ($11.33B from $7.51B) BUT still … 5% lower profits ($3.01B from $3.18B October 18, 2012 17
  • 18. Social Ads October 19, 2012 18
  • 19. Social Ad Global eCPM Social ad CPMs are in the $0.10 - $0.50 range Source: Turn, June 2013 October 19, 2012 19
  • 20. Facebook Ad Benchmarks NOTE: these figures refer to Facebook display ads (by category) Source: WebTrends, January 2011 October 19, 2012 20
  • 21. Video Ads October 19, 2012 21
  • 22. Video Ad Global eCPM Video ad CPMs are in the $8 - $12 range Source: Turn, June 2013 October 19, 2012 22
  • 23. Dr. Augustine Fou – Agency Czar “I study digital marketing trends and advise clients on pre-emptively optimizing across channels and within channels.” FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM) MCKINSEY CONSULTANT CLIENT SIDE / AGENCY SIDE EXPERIENCE PROFESSOR AND COLUMNIST ENTREPRENEUR / SMALL BUSINESS OWNER PHD MATERIALS SCIENCE (MIT '95) AT AGE 23 ClickZ Articles: http://www.clickz.com/author/1151/augustine-fou Slideshares: http://www.slideshare.net/augustinefou LinkedIn: http://www.linkedin.com/in/augustinefou October 19, 2012 acfou@mktsci.com 23