Dive Brief:
- Recent research found mobile ad performance on Google was down in Q2 year-over-year.
- Two KPIs went in negative directions for advertisers – cost-per-click was up 16% and clickthrough rate fell 9%.
- The poor ad results have been attributed to marketers not being prepared for Google's mobile-friendly algorithm change in April.
Dive Insight:
Adobe Digital Index (ADI) released its Q2 Digital Advertising Report and the results shouldn’t please mobile marketers or Google. Mobile ads on Google’s network are underperforming on two key performance indicators. Cost-per-click was 16% in Q2 over last year, and clickthrough rate was down 9%. The poor showing was attributed to marketers not being ready for Google's mobile-focused shift in the search algorithm, and then trying to make up the lost organic traffic with paid search.
The result was what ADI analyst Joe Morgan described as “click inflation” stretching CPC budgets meaning ”advertisers have to spend more just to stay even.”
The news isn’t good for Google because it’s seeing a 3% fall in consumer actions on display ads. Facebook realized an 11% increase over the same period.
Tamara Gaffney, principal at ADI, told Marketing Land, Google is “starting to lose ground as a marketing vehicle. And part of the reason why is because they aren’t getting as many clicks out of global display ads.”