Falling CPC's

Hi,

Is there a fall in CPC's since January.I am seeing a drop in CPC's on my site.I had been doing quite decently till december.But since Jan. have seen a drop of more than 40% on CPC's.

Is it something specific to my site or a trend across?



Adsensic

 

If you mean ePC then yes, and it's typical of what happens after advertisers blow their budget in the time leading up to Christmas. It's pretty normal.

 

this is not for you i also face this probs first .
but after some time you also overcome this..

 

Thanks for the responses bdsense,Adpubster

#1.But I am comparing the drop against last year's drop.Last year(2009 Jan) there wasn't such a big drop(inspite of recessions being @ its peak).So I am a bit worried.

#2.Also, I have a search powered by Google.I find that the search has dropped even more.I guess ,during a slump,advertisers spend more on search CPC's than AFC. So in such a scenario,not able to understand what could be the reason for this.

 

Bingo!

Adpubster is 100% right. Most companies (my real job is in PR, so I sorta know how our marketing dollars are being spent) have a set marketing balance that they use until the end of the year.

Then they take a month or two to evaluate last year's performance, make a new budget for this year, and stream it (along with new products!) to ads.

Furthermore, most big companies avoid advertising in January/February because they very well know that all the little money potential customers had (especially during this economic crisis), was spent on X-Mas presents and vacations. Basically in a typical family, after celebrating X-Mas and buying all the gifts for everyone, there's a huge deficit in liquid cash, so there's no more big purchases until the end of February/beginning of March.

Sooo... just wait till the beginning of March (or actually, end of February) and you'll see your revenues go up automatically.

P.S. The recession is by far NOT OVER yet. I can tell you that because the company I work for (in Canada) just had some NEW layoffs as recently as in December 2009 (yup, despite talks that the recession is over - they've fired over 10% of the staff in Decembet). So comparing this year's stats to last year's is really incorrect. 2009 was still okay because we didn't think we'd sink as low as we did, yet it happened.

 

Thanks Denniss

Just being inquisitive.How do companies allocated AFC & AFS ad spends.

Which is the most preferred.My Hypothesis was AFS will have higher CPC's as it has a high probability of conversion.

Let me know if my hypo is correct.

 

don't worry you will over come from this....

 

Also, there was a drop in late 2008 (when the recession news became front-page) This was ahead of the after-Christmas drop so the second drop after the new year didn't seem as much in my numbers.

Denniss...you're right on...it ain't over yet!

 

I think this thread might be of help.

February Drop?

 

Thanks folks!!

 

Possible solution to this as well, if you have noticed a drop since February, I think this is when Google implemented "interested based ads" so its based on what the visitor wants and not about your website content.

Anyway go to your adsense account:

Go to settings and select: Interest-based Ads Preference then opt-out and see if that helps.