Google Inc (GOOG) 3Q Search Trends Healthy

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Google Inc (NASDAQ:GOOG) saw an upside in its search trends, in a digital market report released by RKT for the third quarter. Google experienced an uptrend in search spend share, and relative strength in Cost per Click (CPCs) growth but CPCs for smartphone declined, and increase in overall mobile traffic. There is no clear mention about the overall trend in Cost per Click for Google in the third quarter although there are indications that overall Google’s Cost per Click growth in the third quarter will be negative.Google Inc (GOOG) 3Q Search Trends Healthy

Based on such factors, Topeka Capital Market analyst Victor Anthony has modeled a 5 percent decline compared to 4 percent consensus estimates.

Google search spend share up

Google Inc (NASDAQ:GOOG) search spend surged sequentially in the third quarter as client search spending on Google climbed 18 percent for the same period, which was in line with the second quarter, but lacked slightly when compared to 21 percent year over year for the overall search providers in the client sample. On a quarterly basis, Google Inc (NASDAQ:GOOG) garnered 2 percent of search spending share, commanding 82 percent of search budgets. Smartphone spend on Google increased 66 percent year over year while tablet spending surged 79 percent, which is a decline from 96 percent in the second quarter. Desktop spend increased 10 percent year over year. The report from RKG noted that benefits from improved mobile ROI were reinvested into desktop.

Smartphone CPCs down

Desktop click volume declined 4 percent year on year in the third quarter, which is an improvement over the decline of 8 percent year on year in the second quarter.

Google’s average Cost per Click climbed 9 percent year on year, a minimal decline from the second quarter, but was more than the 7 percent of all searching engines. Cost per Click for non-branded items increased 10 percent year on year and was flat quarter on quarter. Compared to desktop, smartphones Cost per Click declined steeply in June after the Enhanced Campaigns transition.

The experts believe that the latest transformation by Google Inc (NASDAQ:GOOG) in its search will fuel overall Cost per Click Inflation.

iOS dominates mobile clicks

In terms of operating systems, iOS was ahead with 78 percent share of overall mobile search ads click against 19 percent for Android supported by Enhanced Campaign transition, which caused a relative transition from mobile to tablets. Google Inc (NASDAQ:GOOG) garnered 81 percent share of iOS 6 volumes in the third quarter and an 84 percent share of iOS 7 volumes, even though Bing is now the default engine for SIRI voice search on iOS 7.

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