Google Q2 2012 Earnings Preview

Boston, MA (PRWEB) July 17, 2012

Google is set to announce its Q2 2012 earnings results this week, on Thursday, July 19 2012. Google remains today primarily an advertising business, with approximately 97% of revenues coming from its core search engine advertising business. As such, Googles earnings are largely dependent on key advertising metrics such as the cost-per-click (CPC) and click-through rates (CTR) of search advertisements.

A new search marketing advertising study compiled by WordStream, Inc., a leading provider of search engine marketing software for small and medium-sized businesses, shows that the CTR of paid search advertisements on Google now outnumbers clicks on free organic search result listings by nearly a 2:1 ratio for high commercial intent keyword searches conducted in the US. (These are keyword searches wherein the user appears to be looking to buy a product or service.)

The full results of the new study on Google click-through rates are published in infographic form.

The Value of High Commercial Intent Keywords

In search marketing, different types of keywords have different value to businesses. For example, high commercial intent keywords (such as Buy Xbox 360) and branded keyword searches (such as Nikon D800) are worth much more to businesses than pure informational keyword searches (such as who won the battle of 1812). While unpaid organic clicks still account for the majority of clicks for searches conducted on Google, the new study from WordStream is the first to illustrate that for the types keywords that are most valuable to businesses in the US, pay-per-click (PPC) advertisements account for the lions share of clicks by nearly a 2:1 margin.

New Google Advertising Innovations Driving Revenue Growth

New bigger, more engaging and more targeted sponsored ad formats that allow businesses to more precisely target prospective clients are behind the increases in CTR for high commercial intent keyword searches. For example:

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