Author Topic: Google's New Advertising Products Show Positive Impact  (Read 1900 times)

wiredlife

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Google's New Advertising Products Show Positive Impact
« on: October 19, 2016, 02:14:26 PM »
Feedback from advertisers suggest that budget deployment into Google Search started to accelerate starting in 3Q16 as we head into the crucial Holiday period. Whereas expectations for search budget growth earlier this year was around the 12-15% level, these expectations have now been ratcheted higher to the 15-20% range. This acceleration is due to an array of products new and old ? advertisers have most often cited the newly-released Expanded Text Ads as one of the contributors, as they are only too happy to purchase the incremental paid clicks generated from the rise in click thru rates, especially as the ROI has remained consistent.

Additionally given the secular shift of consumer access from desktop to mobile, we expect continued increase in TAC as a percentage of
Web Site Revenue? we have tied our website TAC to mobile usage which has resulted in a long term ramp.

Continued narrowing of mobile-desktop monetization gap in Int'l combined with eventual higher pricing for mobile CPCs given greater context ? this will be through a combination of the benefits from individual bid adjustments as well as a plethora of other products including app install, as well as increased ad load on the mobile and desktop SERP.

Larger-than-expected contribution from Google's larger non-search businesses, namely YouTube and Google Play