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Digital Marketing Report Claims Slowing Growth for Google

By July 30, 2015 June 26th, 2019 No Comments

Digital Marketing Report Claims Slowing Growth for Google 1

According to the latest digital marketing report, released by Merkle RKG, search advertising growth has slowed in the U.S. The report claims that the CPC growth during the last quarter was affected by marketers running more efficient search campaigns. The average volume of clicks increased by just 3% during the quarter. This was much less compared to the last year. CPC has however grown by 11%.

Impact of Slowing Tablet Sales

One of the reasons attributed to the slowdown in search advertising is probably because of slowing sales of tablets. Clicks from tablets grew by just 3% during the quarter. On a y-o-y comparison, the clicks were 14% down. Cost Per Clicks however grew by 11% over the last year in the same period.

The Smartphone Promise

Revenues from smartphones have shown some growth. The trend shows that this growth will continue into the next quarter. While there was a difference of over 65% in revenue per click (RPC) from phones compared to desktops in Q2 2014, the difference has shrunk to 58% RPC this year.

Google – Slowing Growth in Q2

Google’s growth has started showing signs of slowing. But the better growth in its brand CPC has helped it offset it. The digital marketing report shows that the search giant’s paid search share fell compared to the last year but maintained its growth against the previous quarter.

The deal between Yahoo and Firefox has been seen as the main reason why Google experienced decline in growth over the past year. In fact, the deal reduced its click share by around 2%.

Bing – Growth in Search Ad Spend

Digital Marketing Report Claims Slowing Growth for Google 2

Bing has witnessed growth in search ad revenues by as much as 27%. Despite this promising growth rate, its CPC has not grown anywhere near it – it is a mere 2% compared the last year. Click volume’s growth may have slowed, but it was still over 24%.

Almost 10 points in the click volume growth can be linked to the Firefox deal. The report claims that while Google suffered slowdown due to the Yahoo-Firefox deal, Bing has been a benefactor in some ways. Bing may not yet be anywhere near posing a threat to Google, but world’s largest search engine will have to come up with new strategies to maintain its growth.

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