Falling Prices of Google Ads Not Slowing Down Revenue Growth

The amount of cash per click paid for Google Ads continues to go down. Nevertheless, Advertising Age (adage.com) reported a 17% increase in Google’s Ad revenue for Q4 of 2015. This revenue growth occurred even while cost-per-click was down 13% from the previous year. According to ADWEEK, Google’s cost-per-click dropped another 7% in Q2 of 2016, but ad revenue remained steady due to a consistent rise in total clicks.

The writers wonder whether Google’s ad price has much effect on revenue. According to both sources, a number of other factors affect Google’s ad revenue, some of which may not be noticeable by simply looking at Google’s click rates.

With lower pay-per-click rates, the number of customers purchasing Google ads may continue to rise. What ad design strategies and other factors will make consumers more likely to click online ad content? Two articles in the Journal of Interactive Advertising explore this topic:

• “Red-Hot and Ice-Cold Web Ads: The Influence of Web Ads’ Warm and Cool Colors on Click-Through Rates”
• “Search Engine Advertisement Design Effects on Click-Through Rates”

Editor’s Note:

Sources:

Adage.com

Adweek.com