Safa Says: CPC May Double

In his most recent research note, Piper analyst Safa Rashtchy says based on conversations with advertisers and industry executives, the average “click charge” (or cost per click – CPC) could double from where it is now, at about .45 cents. He points out that advertisers are getting more sophisticated in their approach to paid search, and in fact are willing to “go negative ROI” in their campaigns, in order to gain a lifetime customer.