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CPM and CPC Pricing Trends by Augustine Fou
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
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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
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6. Desktop vs Mobile eCPM
Source: KPCB Internet Trends 2012
October 19, 2012
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7. Display CTRs by Category
Source: MediaMind, April 2011
October 19, 2012
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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
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14. Search CPCs by Category
Source: TBG Digital July 2012
October 19, 2012
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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
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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
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22. Video Ad Global eCPM
Video ad CPMs are in the $8 - $12 range
Source: Turn, June 2013
October 19, 2012
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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
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