For quite a while now, when it comes to Google’s earnings, the company has found found a way to increase revenue coming in from their advertising products, even though they’re making less money per ad. This is all coming from the fact Google has had a CPC problem since the fourth quarter of 2011.
Most thought that the issue was with mobile, as people believed that Google wasn’t able to monetize mobile. But in April of this year, the CFO of Google stated that it wasn’t mobile that’s the problem, but YouTube’s TrueView ads.
So here’s the run down of the situation. Even though there was more people watching TrueView ads, the CPC on those ads were quite low Patrick Pichette, Google’s then-CFO, said they “currently monetize at lower rates than ad clicks on Google.com.”
The new CFO seemed to have the same thing to say on the matter on the the second quarter earnings call:
CPC pricing on YouTube for TrueView ads, ads that users choose not to skip, is lower than on CPC pricing on desktop and mobile, but YouTube TrueView ads represented a larger percentage of our overall clicks, so had a greater impact on CPCs.
So what does this mean for advertisers? Pauline Jakober has some answers for this question. In her Search Engine Land post, Pauline urges you to check out and take advantage of video ads. To find out what’s going on with YouTube video ads and how you could take advantage of them, check out the post written by Pauline by following the link below.
Search Engine Land: Video Ads: Money For Nothin’ & Clicks For Cheap