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Google’s Mobilegeddon Change Is Hurting Advertisers

We finally have some data on how the tweak Google made to its search algorithm that came to be known as Mobilegeddon has affected websites and marketers alike.

According to Adobe’s Digital Advertising & Social Intelligence Report, mobile ad rates have gone up, priority is being given to mobile-friendly sites and Google’s earnings through ads is eroding.

CPC v/s CTR

Advertisers paid more for Google search ads as cost per click went up by 16% from a year ago, however, click through traffic was down by 9% during the same time.

In effect, the gap between what advertisers pay for each click and what they get is no where close and is also widening.

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Mobile v/s Desktop

Google lowered traffic by 10% to all sites that aren’t optimised to be viewed on mobile devices. Revenue per visit on mobile is still lower than on a desktop and incremental changes to mobile optimisation will not close the ROI gap between the two platforms.

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The Ad Machine

Google’s search ad business is indeed slowing and competitors such as Bing and Yahoo have gained some share, but it isn’t clear if the competition will sustain.

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Facebook v/s Google

When it comes to display ads, Facebook seems to be hammering Google hollow. By cutting volumes and increasing prominence, the social network doubled CTRs.

Google on the other hand registered a 22% drop in the ads seen but a 24% increase in CTRs compared to a year ago.

Facebook has made much bigger tweaks to its algorithm and the move seems to have paid off, but it isn’t clear if the success will last over time.

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