Despite Mobileggedon, Facebook ads more relevant than Google

|July 17, 2015 0

MUMBAI, INDIA: In late April, Google updated its algorithm to give mobile-friendly websites preference in ranking for organic searches. According to Adobe Digital Index’s (ADI) Q22015 Digital Advertising Report, companies that didn’t prepare their sites are paying the price–and so is Google.

Indeed, companies that weren’t ready for Mobilegeddon have lost 10 percent of traffic year-over-year (YoY), according to ADI.

According to ADI, brands that neglected to address their mobile Web strategies are seeing mobile advertising via Google’s network delivering less value at a greater cost, with a growing gap between mobile click-through rates (CTRs) and cost-per-clicks (CPCs).

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ADI notes that mobile CPCs are up 16 percent YoY, while CTRs are falling, down 9 percent YoY. This leads to the realization that visual ads are becoming an important segment in advertising.

Marketers have greatly increased their spend on Google, Yahoo! and Bing for visuals-based product listing ads. Display ads, which typically have very low CTRs, are becoming more efficient and should be considered in a marketers overall digital marketing strategy, ADI says.

Half the impressions at twice the cost must generate the same or more clicks, or other success metrics, according to the ADI Q22015 Social Intelligence Report. But even with such a drastic change, Facebook has seen an increase in the total number of actions consumers take (+11 percent YoY). As a result, CTRs are nearly double what they were before the change. On the other hand, Google, with its incremental changes, has seen a decrease (-3 percent YoY) in consumer actions.

In a separate, but related, analysis to better understand the perceptions of consumers and media, an Adobe-commissioned survey of 400+ US consumers found that users think Facebook display ads are more relevant (51 percent) than Google display ads (17 percent), the majority of which are displayed on YouTube.

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