Comment Misleading (Score 2) 313
This article is pretty misleading. Overall spend on paid search is up, not down. Spend on online display is up, not down.
One of the liked articles says "To make up for the CPC loss, it managed to increase overall clicks by 42 percent". That's pretty speculative as to the direction of causation. It makes more sense that clicks are growing heavily in non-premium keywords, ones that command lower price points. I haven't seen any evidence that premium keyword ad pricing is falling dramatically.
One thing that does ring true is that overall online advertising spend growth is trailing inventory growth, and therefore per-unit pricing on inventory is probably decreasing. Spend growing, inventory volumes growing faster, per unit prices falling.
One of the liked articles says "To make up for the CPC loss, it managed to increase overall clicks by 42 percent". That's pretty speculative as to the direction of causation. It makes more sense that clicks are growing heavily in non-premium keywords, ones that command lower price points. I haven't seen any evidence that premium keyword ad pricing is falling dramatically.
One thing that does ring true is that overall online advertising spend growth is trailing inventory growth, and therefore per-unit pricing on inventory is probably decreasing. Spend growing, inventory volumes growing faster, per unit prices falling.