It turns out Merkle who are part of the Dentsu Aegis Network have released a report that details the ins and outs of trends seen in Google advertising. Now, there are reasons to be a little bit concerned for the future of PPC if your business relies heavily on PPC and you’re not really pushing the boundaries and getting the most out of it because if your competitors are doing the right things in PPC and you’re not, you’re going to become very, very unprofitable via pay-per-click. I’m going to break down the trends in the report and the reasons you should be a little bit afraid if you’re doing things wrong coming up after this.
Hey, guys, Darren Taylor of thebigmarketer.co.uk here, giving you tips, insight, and opinion on all things marketing. If that’s up your street, you should consider subscribing. Today, we’re looking at a report by Merkle who are part of the Dentsu Aegis Network along with some of the trends we’re seeing in the last couple of years for pay-per-click, particularly on Google.
The first trend I want to highlight to you guys is that CPC’s are going up. Of course, you’re going to know that. There are a number of reasons for that. Things as simple as inflation on a global scale or even a macro scale for different countries is going to affect that, but beyond that, brand CPC’s are increasing on Google. Now, especially brands where people aren’t necessarily bidding on your brand name, your bidding alone for your brand, even CPC’s for this are increasing as well.
The reason for that is simply Google are turning the screw a little bit here. They’re literally pushing up the cost of CPC’s. This is not something we haven’t seen before. We’ve seen this many times before. This is a trend we’re going to continue to see in pay-per-click. Traffic is getting more expensive, but the bad news doesn’t end there either because in actual fact on Google, the number of clicks, the actual traffic AdWords generates grew a lot slower than previously. In fact, it’s on a bit of a decline in terms of growth of traffic on AdWords.
What does this mean? This means the actual growth of AdWords traffic is slowing because people are moving their money onto other mediums too, because, let’s face it, let’s be realistic here, AdWords is becoming squeezed. It’s a very, very mature product, a very effective product, probably the highest converting product out there for digital marketing perspective in terms of biddable media, but it’s a very mature product and, therefore, costs are increasing, people are getting better at doing it, and people are also looking at other avenues to expanding like Facebook ads or Instagram ads or things like that on different networks.
That is the reason why we’re seeing the decrease, I guess, in some respects of AdWords, traffic coming through, because of those movements to different mediums as well. Now, people might look at this video and think it’s all doom and gloom for the world of PPC on search, but no, AdWords PPC and, in fact, Bing PPC as well, to a lesser extent, are very powerful mediums. They’ll continue to be because it’s the only place where you can show up when people are actually looking for your product actively.
Facebook ads, incredibly effective, Instagram ads, incredibly effective, but both of them, they’ve got great demographic targeting, but they’re not in front of people when they’re looking for your product. That is an incredibly powerful tool Google has at their disposal. Even if people move on to other mediums, there will still be room for PPC on Google, but what can you do about it? If it’s getting squeezed this much, what can you do?
Well, first of all, watch my videos on PPC because that’s really going to help you get more from your paid search campaigns, really optimize them and make them better performing, have higher ROI, better quality scores, and really improve things going forward. All of that’s really going to help you beat your competitors, and you’ve got to remain highly competitive on PPC. Because if you’re not doing it and your competitors do the things that they’re meant to do on PPC, you’re going to struggle.
Looking at the data in this report from Merkle, you’re going to struggle massively in the future. The future of PPC is going to be very, very competitive. That’s why the long-term future of PPC years and years from now is all going to be about artificial intelligence and machine learning. There’s elements of that already in PPC. There are lot of agencies doing great things with that, but from a wider scale accessible to the small business, that will be the future of PPC.
It doesn’t mean PPC consultancy is going to become redundant, doesn’t mean knowledge of the platform is going to become redundant, it just means that things that will be day-to-day running of a campaign to improve performance over time will be automated, which isn’t necessarily a bad thing. You might think I’m crazy for saying that because I use AdWords and I’m an AdWords expert.
I’ve dedicated years to learning the platform back to front, but I’m looking forward to embracing automation and looking at the consultative approach of AdWords during the setup, the business cases because as good as AI and automation are, they’re never going to understand the unique business cases and the actual implementation of a campaign and how that reflects on a business on an individual basis.
That consultancy part is something I love, learning about a business and optimizing a campaign towards what they’re trying to achieve. What is the future of AdWords? The future is bright, but it’s becoming very, very squeezed, so you’ve got to become good. You’ve got to be amazing actually at AdWords to get the most from it. You continue to learn, continue to develop and your campaigns should still maintain their power in the future as well.
Thanks for watching. If you like this video, please leave a like. Let me know in the comments what you think the future of AdWords is going to be for you and your business or if you’re a marketer, what your professions going to look like in five years from now if you’re a PPC marketer. More important than that, don’t forget to subscribe. Check out the other content on my channel as well. Until then, I’ll see you guys on the next video.