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Paid Search Trends
iPROSPECT QUARTERLY REPORT | 2017 Q4
By Jake Hughes, Director, Paid Search, Caitlin Portrie, Manager, Paid Search
and Michael Kelley, Director, Data Insights
iP COPYRIGHT 2018 © i PROSPECT, INC. ALL RIGHTS RESERVED.
iProspect Quarterly Report Paid Search Trends | 2017 Q4 2
Introduction
Q4 wrapped up a transformational year in the world of paid search. Many changes to
the search engine landscape and shifts in client strategies influenced improvements
in campaign targeting, but also caused dramatic increases in cost.
Competition got fierce in 2017 with more and more spend shifting toward mobile
and, in the retail vertical, shopping ads. From increases in mobile ad inventory to the
release of many new shopping ad formats, the race is on to stay competitive. While
Google’s earnings reports for the past several quarters revealed an overall decrease
in cost per click (CPC), it’s worth noting that their report combines all ad formats (in-
cluding YouTube, programmatic, Gmail ads, etc), and this aggregate number doesn’t
reveal trends for each type of ad. Paid search and Shopping CPC reached an all-time
high in Q4 2017, rising 25% year-over-year (YoY). The good news for brands is that
while these changes drove higher spend levels, they also drove better campaign effi-
ciency, which in turn drove higher conversions.
PA I D S E A R C H C P C
Q1 Q2 Q Q4 Q1 Q2 Q Q4 Q1 Q2 Q Q4
201 201 201 201 201 201 201 201 2017 2017 2017 2017
© 2018 IPROSPECT. ALL RIGHTS RESERVED.
iProspect Quarterly Report Paid Search Trends | 2017 Q4 3
Rising CPC could be caused by a variety of factors; however, we can pinpoint the main
drivers by ruling ou
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