Better targeting of paid search ads leads to lower CPC

04/25/2013 | MediaPost Communications

Better targeting is lowering the cost per click of paid search ads. The first quarter of 2013 saw the average CPC rate reach a five-quarter low of 39 cents, even as marketers enjoyed better conversion rates on networks such as Google and Yahoo-Bing, according to a report from Kenshoo. Compared with last year's first quarter, click-thru rates increased 62% to 1.68%, while click volume is 21% higher. Both factors may be contributing to lower a CPC rate, according to Kenshoo.

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