Over nine in ten internet searchers choose a business that’s featured on the first page of search results when they’re looking for a product or service. Last year, research showed that AdWords cost per click had reached a record high – but an analysis by Admoo shows that this could just be the beginning of soaring costs and advertisers should expect their budgets to be stretched even further by higher prices in 2018.
Nigel Copley, CEO of Admoo, said, “Paid search is an essential part of the marketing mix for most ecommerce brands, particularly as Google has invested more resources and more functionality in related products such as Shopping.
“While iProspect research found that the CPC for mobile sharply increased – by 17% on Q1 and 52% year-on-year, we expect that this is by no means the end of it. The actual volume of clicks fell although cost increased and, due to this our analysis suggests that the keywords delivering the best return will continue to increase in cost as 2018 progresses.”
In addition to a continual leap in cost per click for strong ROI phrases, Admoo also expects to see 2018 advertising shaped by the rise of machine learning, greater consideration for voice searches and enhanced demographic targeting.
Copley added, “PPC evolves fast and businesses really need to understand and keep abreast of those changes to remain agile. Competition for the best performing keywords is more intense than ever with few clicks to go around and there is also the promise of more clicks from mobile devices t factor in. In 2018, recognising how consumer searching patterns are changing is a must for any ecommerce brand reliant on paid search for traffic and conversions.”