The popularity of this option is evident in the massive increase in the cost of advertising on platforms like Facebook or Google. In addition to the previously mentioned increase in Facebook CPMs, the cost per click for Google Search ads increased 41% between Q3 2020 and Q3 2021, per Merkle. Android’s more lenient privacy policies have greatly increased mobile app install spending on the platform.
Merkle also reported that Amazon’s CPCs were continuing to fall in Q3, with Sponsored Product ad CPCs down 8.5%. Tinuiti also reported Amazon CPCs down YoY in Q3, but Pacvue reported its clients’ CPCs for Sponsored Product and Sponsored Brand ads had returned to annual growth.
The large drop in local search will continue to suppress mobile CPCs, and consequently Google revenues. Sustained business from larger advertisers will not offset all of this. At the same time, however, the IAB data indicates that both Facebook and Google are experiencing smaller drops from larger advertisers than other publishers. There are some bright spots for mobile advertising, though.