Google Earnings: Not All Good News?
Last week, we highlighted the good news from Google’s Q2 earnings report—they beat expectations and they expect YouTube to be profitable soon. But there was more to the full report, as Econsultancy points out today.
In the paid search arena, Google’s bread and butter, the results weren’t as bright as the hope that YouTube will be in the black soon. Overall paid clicks were down 2% from Q109, and down 13% YOY.
Efficient Frontier agreed, according to Econsultancy.
According to Efficient Frontier, Q2 saw a 20-31% decline in CPCs amongst the advertisers in its Customer Index. Google CPCs dropped 31% while CPCs on Bing and Yahoo dropped 30% and 20%, respectively.
EF says that advertisers benefited the most. In the UK, for example, advertisers “were able to cut their spend 11% year-over-year while boosting ROI by 2%. Across the pond in the US, advertisers fared even better. They were able to reduce spend 21% year-over-year while boosting ROI by a whopping 29%.” With lower CPCs, says EF, now is a good time for advertisers to reevaluated their paid campaigns.
However, Efficient Frontier has been wrong before (like, say, last quarter when it said something very similar). What do you think? Is Google falling off, or is Efficient Frontier way off? Will you be taking a look at your paid campaigns?