UBS: Average CPCs Up 20%-Plus In October

According to UBS analyst Brian Pitz search cost-per-click (CPC) rates were up 26% on average in October versus the prior month.  That’s a big improvement over September, which was up 9% over August.

While there could be some seasonality involved (retail drove a lot of the increases likely driven by holiday spending), this would support our findings last month that the online ad market was showing the first signs of a recovery (albeit a modest one) since bid rates on the display exchanges were showing the first increases in a couple quarters.

Seach and display inventory on exchanges are bought in real-time so can be lead indicators of overall online advertising, much of which is bought a few months in advance.

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