Facebook had better conversion rates than GDN – in fact, Merkle found it had the highest revenue per click compared to GDN and others.
But GDN is about price. Clicks were 42% cheaper than those on Facebook. In fact, Facebook was the most expensive – other networks typically had 20% cheaper clicks than Facebook.
GDN ad impressions were 39% less expensive than on Facebook. But other display networks ranked 22% more expensive than on Facebook. Facebook is getting more expensive because of decreasing real estate as larger right hand rail ads limit the overall availability of impressions.
“GDN is still a big part of display budgets and it has grown,” said Taylor. “With the potential added capability of targeting specific email addresses and other CRM data, advertisers are probably going to allocate even more of their budgets there.”
“I don’t think we’re going to see Facebook spend slow down,” he added, “but I do think Facebook’s CPC and CPM are going to continue to rise relative to other display opportunities. I also think GDM is going to grow in importance, especially as a share of Google spend.”
As for what’s been dubbed Google’s “Mobilegeddon” – its search algorithm change that prioritizes mobile sites – Merkle|RKG found that 46% of Fortune 500 Companies and 29% of Internet Retailer top 500 firms could lose ground in Google’s search ranking (despite a handful of publishers excited about the change).
Those percentages represent the firms that had not received Google’s “mobile-friendly” designation as of early April, which matters to advertisers because mobile devices are 47% of Google’s total organic traffic.