Search Trends Show Unexpected Rise in Desktop CPCs, Highlight B2B Investment in Mobile

Press Release from iProspect

NEW YORK, April 27, 2017 /PRNewswire/ -- Today, iProspect, a leading global digital performance agency and trusted business partner to some of the world's most powerful brands, released its Quarterly Paid Search Trends Report for Q1 2017. Analysis highlighted both predictable and surprising trends. High desktop CPCs, soaring voice search adoption, and Amazon's influence in the Google Shopping space marked important movements, as well as key insights for business verticals including Retail, B2B and Consumer Packaged Goods.

"Most surprisingly, we saw a 26% rise in year-over-year desktop CPCs -- even higher than in the fourth quarter of 2016," said Charlotte Morris, Paid Search Trends Report author and Regional Director of Paid Search. "Desktop CPCs are increasing despite less overall search demand on this device type. Typically we see costs increase to mirror consumer trends as seen with the influx of competition and cost on mobile. It's all about supply and demand and how that should economically impact price.

"Demand is flooding to mobile and supply is limited, so costs continue to rise. For desktop, there is plenty of supply, demand continues to fall, so marketers would expect to see desktop costs decline rather than rise," continued Morris. "There are a couple of theories to explain this trend. Some advertisers that invest in audience targeting on desktop are willing to pay more for certain audience groups relevant to their brand, and Google continues to adjust their algorithm."

A closer analysis of three business verticals, Retail, B2B and Consumer Packaged Goods (CPG) revealed important findings for marketers.

  • Retailers continue to invest in mobile and Shopping ads, more than doubling their investment in Q1 YoY. 58% of all clicks were on mobile vs. 32% on desktop and 10% on tablet. Retailers with physical store locations continue to get savvier about measuring the influence of their paid search initiatives on in-store activity, particularly with the help of product innovations from Google—such as AdWords Store Visit conversions.
  • Mobile B2B CTR continues to benefit from an upward growth trend. The B2B industry has been slow to adopt mobile with the complexity of the business buyer's journey and conversion process not easily translated to the mobile screen, but Q1 growth in B2B traffic and CTR indicates a pivotal change: B2B brands are expanding coverage and embracing mobile.
  • CPG clients recorded an outstanding 61% increase in traffic and an equally impressive 59% increase in CTR in Q1. As Search is one of the most successful channels for direct response, CPG advertisers are increasing their focus on the channel. Also, with the expansion of auction-based merchandising with partners such as Amazon and Hooklogic, further direct response-focused measurement has brought a new energy to CPG digital marketing. Expect to see increases in adoption of auction-based merchandising across CPG advertisers over the course of 2017.

Representing 1,300 Google AdWords accounts and more than 176,000 active campaigns, iProspect's Quarterly Paid Search Trends Report provides an analysis and overview of the trends and corresponding opportunities relevant for brands that are taking a strategic, performance-focused approach to paid search marketing.

For all the findings and insights, download the full report here.

About iProspect
At iProspect, we transform our clients' businesses by connecting brands with people. Leveraging our suite of services, smart technology, extensive global footprint, and the industry's best specialists, we provide best-in-class performance strategies to get you the results your business needs. iProspect is the first truly global digital marketing agency, with 4,000+ employees in 88 offices across 54 countries. A trusted partner with an in-depth understanding of consumer behavior, iProspect reshapes brand strategies to meet the fast-paced demands of the convergent world with a focus on exceeding the client's business objectives.

Our global reach, in-depth knowledge of diverse local markets, and expertise produce award-winning, performance-based marketing strategies for leading brands such as General Motors, adidas, T-Mobile, Hilton, Sunglass Hut, Microsoft, and many others. iProspect has been named the "Best Agency for Performance Marketing" by iMedia for 3 years in a row, the 2015 MediaPost Search Agency of the Year and iMedia's Best Agency for Search.

For more information, visit or follow us on Twitter @iProspect.

Media Contact:
Andrea Dorsett
iProspect Communications Manager
Phone: (214) 957-5990

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