According to a new analysis by WordStream, Google's flagship product is pulling in over $100 million in search advertising dollars every day. In addition, Google search ads had 5.5 billion impressions per day while the average CPC on Google Search declined to $0.53. This analysis comes just one week after Google's third quarter 2012 earnings missed high Wall Street expectations.
“In the end, huge increases in ad impression volumes and clicks more than made up for declines in cost per click and click-through rates,” said Larry Kim, founder and chief technology officer at WordStream. “This research reveals that the Google economy is evolving. An individual click is not as expensive as it used to be, but many more impressions and clicks resulted in yet another record quarter for Google ad revenues. I believe this is advantageous for both Google and advertisers - it’s a win-win. Advertisers can now get more customers for lower costs, which increases the ROI of this marketing channel.”
Earlier this week a Google business development executive spoke to small businesses in the Lexington, KY area about the importance of search advertising. Though not everyone in the audience seemed to grasp the basics of internet marketing, the presentation highlighted how Google is marketing AdWords to small businesses, now that major enterprises are beginning to diversify their ad dollars to social media and other search engines.
The infographic below, prepared by WordStream, shows exactly where Google is getting most of its ad revenues. Unsurprisingly, the finance industry spent the most on Google ads in the third quarter of 2012 and has the highest CPC of any industry in the top 10 with $3.09. Following in second and third place are the travel and shopping industries, which have the highest conversion and click thru rates, respectively.