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Google CPC DROP -- Ultimately Means, MORE For Publishers

[Added, just today-Thanks to AdExchanger: "The Business Insider's Matt Rosoff postulates that declining CPC's are due to Admeld's second price auction. He writes, "AdMeld works with a bunch of large publishers, and now those publishers are all in Google's ad system. So here's the problem: when advertisers win a bid to place an ad on Google, they do not pay the price they bid. They pay a tiny bit more than the second-highest bid." Display ads are killing GOOG CPC's?" The Story.]

And ....

"On the earnings call, Google cautioned investors that it was too complicated for them to figure out, citing a combination of foreign exchange rates, growth in mobile and developing countries, and new ad types."

Google may well have advised those who listened to the call, to go to this my instablog-post & get a complete 'run-down' as to reasons why.

Matt Barash 'Tweets' (on Twitter), that ..........GOOG CPC down 12%. 'cause pub never sees rev share in black box arrangement, GOOG can manipulate eCPM and take less margin to win top line $

But I'm not so sure this is a totally correct interpretation.

In fact, back on the 7th of April, 2012 - I'd even gone as far as suggesting that:

#..As we move into the Q2 2012 period (and according to Alexa), it's clear that [linked here] GOOGLE are in full 'swing'-within Looksmart's "exclusive" (global) CPA/CPV marketplace.

As more advertisers (including Agencies and self-serve) become involved, I feel that publishers can only then get to see an increase in their ROI..#

And as was predicted, above?

You need only to 'read between the lines' of the following - contained within Google's Q1 2012 Report today.

********

Paid Clicks - Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of our Network members, increased approximately 39% over the first quarter of 2011 and increased approximately 7% over the fourth quarter of 2011.

Cost-Per-Click - Average cost-per-click, which includes clicks related to ads served on Google sites and the sites of our Network members, decreased approximately 12% over the first quarter of 2011 and decreased approximately 6% over the fourth quarter of 2011.

********

Google's TAC - Traffic acquisition costs, (that's the portion of revenues that's shared with Google's partners), increased to $2.51 billion in the first quarter of 2012 as when compared to TAC of $2.04 billion in the first quarter of 2011.

And of that total $2.51 billion - The majority of TAC is related to amounts ultimately paid to our Network members, which totaled $2.04 billion in the first quarter of 2012.

GOOGLE are paying out MORE of it's revenues, to Publishers

Google are (clearly) passing on more of it's advertiser's 'spend' - that's now going through and or, being dispersed into their partner Exchanges (that includes - to publishers working within the Looksmart Performance Marketplace) and then onto publishers within those exchanges, including those publishers within Google's very own, publisher partner network.

Yes and I know it's a mouthful! [See Looksmart's Traffic, below]

....I feel it's the very reason why Google has declared a CPC decrease of approximately 12% Y/Y & why Google's CPC has decreased by approximately 6% over the fourth quarter of 2011.

As Google's own advertisers place more Ads within the Google Partner's own publisher bases - this CPC "metric" figure will continue to decrease even further. Is my opinion.

investor.google.com/earnings/2012/Q1_goo...

This above advice (from Google) really augers very well for Looksmart's own total ("comprehensive income") Revenues, in this same (Q1 2012) period. Again, just my opinion.

Meanwhile, a 'dumbed-down' market is being 'hood-winked' in regards to Looksmart, while the smarties continue to buy shares from unsuspecting and frightened shareholders. I find it all truly amazing, when considering Looksmart's $24.8 million end of Q4 2011 'cash' holding-and a Market Cap of just $16.95 million on today's closing share price value?

LOOK: $0.9801 Down 0.0299 (-2.96%)

As always, ony just an opinion.

LC

Looksmart's Marketplace Traffic "ClickStream"-as per Alexa, today.

www.alexa.com/siteinfo/looksmart.com#

Upstream Sites

Which sites did users visit immediately preceding looksmart.com?

% of Unique Visits Upstream Site
40.93%   google.com
10.69%   7search.com
9.27%   yahoo.com
4.64%   alexa.com
4.23%   facebook.com
3.02%   google.ca
3.02%   local.com
2.82%   domaingateway.com
2.62%   microsoft.com
2.42%   servefeed.info

Downstream Sites

Where do visitors go after leaving looksmart.com?

% of Unique Visits Downstream Site
42.37%   google.com
10.81%   7search.com
4.66%   yahoo.com
4.45%   monstermarketplace.com
4.24%   clickbank.com
4.03%   facebook.com
2.97%   alexa.com
2.97%   expedia.com
2.97%   google.ca
2.97%   microsoft.com