Data: Cost-Per-Click for Mobile Campaigns on the Rise

Mobile shopping

SAN FRANCISCO – Cost-per-click (CPC) figures for mobile campaigns rose 25 percent in fourth-quarter 2017 (compared with the year-ago quarter) for Marin Software clients, according new data released by the company. Mobile CPCs still cost less relative to desktop CPCs, but the gap is closing quickly.

Marin’s study also says the mobile share of search budget continued to steadily increase 1 point per quarter in 2017, reaching 53 percent in fourth-quarter 2017 – up from 49 percent in 4Q 2016. 

CPCs in retail hit about 70 cents and business-to-business services CPCs reached $1.75. Travel and technology saw the lowest average CPCs – 49 cents and 50 cents, respectively. 

Overall, click volume throughout fell through third-quarter 2017, but then began rebound in 4Q 2017, although marketers spent more throughout the year.  

The report saw a 3-percent increase in creative-light ad groups during fourth-quarter 2017. In the third quarter of 2017, Marin noted Google’s improvements to its creative rotation technology rewards advertisers using three or more ads per ad group with increased clicks and impressions.

Shopping ads witnessed an 8-percent increase in clicks and 31-percent increase in click share. The report suggests an increase in use should be expected during 2018. However, social CPMs rose year-over-year, while click-through rates remained flat, which may indicate personalization is not keeping pace with consumer expectations. 

To create the report, Marin gathered data from customers who invest billions of dollars combined in annualized ad spend on paid search, display, social, and mobile. Marin only includes advertisers active on its platform for the past five quarters, measuring key performance indicators on a year-over-year and quarter-over-quarter basis and removing any outliers with significant year-over-year or quarter-over-quarter changes.