In “Cheaper Clicks from AdWords Coming?,” my article from Feb. 2012, I questioned whether the then unprecedented decline in cost-per-click rates would be a blip or a trend. One year later, Google apparently thinks it’s a trend, as Google is requiring all advertisers to adopt its newEnhanced Campaigns.
This will likely reverse the decline in CPC rates that resulted from increased adoption of smartphones and tablets, when advertisers expected lower conversion rates from mobile traffic, and bid down their mobile campaigns. With the new rollout you will still be able to bid down mobile phone clicks, but the way you do that will be much different. If you don’t properly migrate, you’ll be automatically opted into mobile campaigns — paying higher rates — and that could significantly impact the profitability of your campaigns.
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