Last month I read a news brief on Google’s projected numbers for 2011. It was no surprise the damn thing had a green arrow pointing north. With Larry Page at the helm of Planet GOOG (ticker), he has a major undertaking to GOOG shareholders. The idea of making money hasn’t changed. However, one could only question if the plan for making money has changed. Frankly, it’s been the same plan all along.
Google published its projected increase for CPC (cost per click) in 2011 as 5%, the same as last year. When I heard this, I choked on my Americano. There is no way Google’s CPC only increased 5% last year. They must have done one of those weighted means we forgot about in Stats class. Even after digging up a subjective number, we found an 8% increase in CPC that was published by Jefferies & Co.’s analyst, Youssef Squal.
Youssef may not be so quick to overstate but I will. It’s more than that. It’s hard for us to tell because we manage our clients CPC down. When you think about all the advertiser accounts that go unmanaged or that are managed by a majority standard, 8% is the difference between a CPC of $1.00 and $1.08. Come on!