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.

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CPM and CPC Pricing Trends by Augustine Fou

  1. 1. CPM and CPC Pricing Trends Dr. Augustine Fou http://www.linkedin.com/in/augustinefou October 19, 2012.
  2. 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. 3. Display Ads October 19, 2012 3
  4. 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. 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. 6. Desktop vs Mobile eCPM Source: KPCB Internet Trends 2012 October 19, 2012 6
  7. 7. Display CTRs by Category Source: MediaMind, April 2011 October 19, 2012 7
  8. 8. Mobile Ads October 19, 2012 8
  9. 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. 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. 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. 12. Search Ads October 19, 2012 12
  13. 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. 14. Search CPCs by Category Source: TBG Digital July 2012 October 19, 2012 14
  15. 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. 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. 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. 18. Social Ads October 19, 2012 18
  19. 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. 20. Facebook Ad Benchmarks NOTE: these figures refer to Facebook display ads (by category) Source: WebTrends, January 2011 October 19, 2012 20
  21. 21. Video Ads October 19, 2012 21
  22. 22. Video Ad Global eCPM Video ad CPMs are in the $8 - $12 range Source: Turn, June 2013 October 19, 2012 22
  23. 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

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