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Roller Coaster Brand CPCs Come Back Down to Earth

Just two weeks ago we reported on increases in average brand CPC on phones that began impacting many advertisers’ spend in the last week of June. Just as quickly as CPCs increased, however, they’ve fallen right back down to earth, and over the last couple of days have actually been about 10% lower than what was observed in early May for the median advertiser.

What Just Happened?

Since there was no obvious cause of the initial increase in mobile brand CPC, it’s a bit hard to say what changed to totally reverse the trend.

I’d love to think Google read our blog post and identified some issue unintentionally causing CPCs to rise which they’ve since remedied, given that CPCs began falling almost immedately after our post was published. A research analyst can dream, right?

The timing of the increase oddly aligned fairly well with the apparent roll out of a fourth text ad on phones in late June, as evidenced by a significant increase in the share of non-brand phone text ad traffic coming from ads in the fourth position.

The rollout of the fourth text ad was very unlikely to have had any impact on brand CPCs, however, so it seems to just be coincidence.

Either way, yay lower brand CPCs! We’ll be sure to publish any updates to this trend in the coming weeks and months.

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