Google Inc (GOOG) Lacks In Display Ads Relevance Compared To Facebook (FB), Says Adobe’s Data

Google Inc (NASDAQ:GOOG)(NASDAQ:GOOGL)’s mobilegeddon is having an adverse impact on marketers, according to data supplied by Adobe Systems Incorporated (NASDAQ:ADBE). It is emerging that mobilegeddon is expanding the gap between what advertisers are paying for in Google ads and what they are getting from the campaigns. Google tweaked its algorithms to favor websites that are mobile-friendly, but Facebook Inc (NASDAQ:FB) appears to doing well on that front.

In terms of display ads relevance, Adobe has noted that Google Inc (NASDAQ:GOOGL) lags its mobile rival Facebook. For instance, Facebook’s display ad changes have increased prominence and cut volume, doubling click through rates. However, Google’s display changes increase ad rollout by 22% but increase click through rate by just 24% compared to the previous year.

The survey further established that 15% of consumers consider Facebook’s ads more relevant, compared to Google’s YouTube at just 17%. In the mobile tweaks, Facebook’s changes also appear to be paying off better than Google’s.

Widening disparity

Adobe has established the widening gap between what is paid from ads and what marketers are getting in its Digital Advertising and Social Intelligence report for the second quarter.The report also reveals that things are slowing down in Google’s bread and butter search ad business.

Marketers have noticed that the gap between what they pay for ads and what they get has expanded to 25%, a development that is clearly troubling.

Plunge in click through traffic

It has also surfaced that advertisers are paying more for ads in the mobilegeddon dispensation. Cost per click has jumped by 16% from last year and click through traffic has plunged by 9% over the same period.

Adobe’s report on the impact of mobilegeddon couldn’t have come at a better time. Google Inc (NASDAQ:GOOGL) is poised to report second quarter earnings later today, July 16. Analysts on the average expect Google to post EPS of $6.69.

Sites with lower social engagement are witnessing 10% decline in traffic as Google Inc (NASDAQ:GOOGL) pushes forward with mobilegeddon. However, Adobe cited that this is just the beginning of unfavorable things to come for sites that haven’t customized for mobile.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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