People are overreacting to this. The drop in CPC is coming from getting MORE business in developing regions (which means lower cpcs & lower avg across the board). Certainly doesn't mean Google is making less money.
> We know most of Google’s growth is coming from outside North America, which means they are adding search volume but at a much cheaper auction than their established business. North America business is very strong and has seen CPC inflation for the desktop search — due to plateauing inventory and higher prices on things like PLAs.”
People are overreacting to this. The drop in CPC is coming from getting MORE business in developing regions (which means lower cpcs & lower avg across the board). Certainly doesn't mean Google is making less money.
> We know most of Google’s growth is coming from outside North America, which means they are adding search volume but at a much cheaper auction than their established business. North America business is very strong and has seen CPC inflation for the desktop search — due to plateauing inventory and higher prices on things like PLAs.”