Will rise of Google's zero-clicks lead to increased CPCs in India?

Zero-click searches on Google are picking up pace by the day. A global study published by Rand Fishkin, SparkToro’s CEO and co-founder found that nearly 60% of searches on Google result in zero clicks. To be specific, the percentage of zero-click searches in the US was 58.5% and in the European Union was 59.7%.  

Clicks impact search rankings on Google creating a ripple effect for businesses. The high rate of zero-click searches indicates that users are finding answers directly on the search results page without needing to visit additional websites. Experts attribute this shift to the growing prevalence of featured snippets, knowledge panels, and other rich search features that Google employs to provide immediate information.

While in the US and EU this trend is on the rise, the story back home in India seems to be no different. exchange4media has reached out to Google and is awaiting a response. A Google spokesperson however told exchange4media that this study relies on flawed methodology. “It misunderstands how people search for information online. For example, this study doesn’t take into account the many times people refine their search queries because they don’t find what they’re looking for right away,” the person said.

The spokesperson also pointed out that the notion of “zero clicks” presumes that every search should result in a click, and ignores how people actually use Search.

Preetham Venkky, Chief Digital Officer, DDB Mudra Group said, “It is exactly the same as in the US and Europe, the traffic drop is about 30% right now.” He also added that this trend is more likely in the markets where Google has rolled out SGE or Search Generative Experience. SGE basically uses generative AI in search. to give users quick and clear overviews of their search queries—so they don't have to click on individual website links. 

Traditionally, users looked up various forms of content (informational, actionable, educational etc.) on Google search. However, with SGE more and more of this content would pop up, without having to click on any links. Venkky explained that the SGE has started delivering informational as well as actionable or the first and second level content, based on long tailed research. “That is what is affecting the clicks because the traffic will come down as informational content is getting delivered. You do not have to click on a link.” 

Rahul Vengalil, CEO and Co-founder tgthr agrees that this indeed is a trend and that the launch of AI led search has been a key reason for the same. “New search pattern will make it easier for the users to find answers on Google. All the casual searches will be answered with zero clicks and only high intent and high research keywords will lead to clicks,” he said. 

Google clarified to e4m that some popular searches are for what could be reasonably described as commodity information: calculator, weather, sports scores, time & date, etc. “For these searches, people want information fast, and there isn’t great variety between providers of information - a calculator should deliver the same result regardless of provider. So in these cases, we work to license data and provide our own calculators for quick answers, where this common information is not a competitive differentiator between sites,” the spokesperson explained.

However, according to the industry, zero click is a major concern for most news / dynamic content websites as the value of their content is to be delivered to the consumer without the consumer actually visiting the website. Sajal Gupta, Chief Executive, Kiaos Marketing gives the example of someone checking the Cricket score. “This will be delivered to the consumer on the Google search result page after picking up the content from a Criclive or Cricinfo website, without the consumer visiting the website. This has increased with the popularity of AI Generated content,” he added. 

While the changes brought on by Google and SGE might be a game changer for consumers, experts note that it probably is time for marketers to revamp their strategies. Why so, one might ask. According to Vengalil, this trend of zero click search means that the overall universe of click reduces, and consequently Cost Per Click and Customer Acquisition Cost will go up in the coming days. “However, I believe it will become more effective for advertisers. Advertisers will also have to have high intensity seo programs to capture the zero click searches,” he mentioned. 

Venkky echoed a similar opinion and mentioned that the CPC is bound to go up. However, he also clarified that this might not be a uniform scenario for all sectors. “While in a sector like electronics it might most probably go up, in some cases it might remain the same,” he said. 

This may also mean that brands might reduce using performance marketing considering the rising CAC. The good news however, according to Venkky, is that with CPC going up, some categories of businesses will stop spending that much on Google which will give the ability to SaaS platforms to perform. 

Tejas Maha, Group Head- Paid Media, White Rivers Media agrees that while website traffic metrics might budge a bit, this is the chance to shine even brighter in search results. “The global trend of ‘zero-click’ searches means fewer clicks on ads, potentially impacting ad revenue. But we can still win through clicks by employing smarter ad copies and ad extensions,” he said. 

According to Maha, adapting Pay Per Click or PPC strategies becomes crucial for maximising ROI amid evolving search habits and ensuring effective campaign performance. “The future may belong to ads that captivate users at first glance,” he added.

Google’s spokesperson added that clicks alone are not a sufficient metric to measure value-- just because someone clicks on a website doesn’t mean that they’ve actually found what they’re looking for or that they’ve stayed on that site. “Similarly, traffic is not the same thing as a sustained audience or customer base: helping people get to the most useful information where the website actually fulfills that person’s need can be much more valuable than a click from a user who may not be likely to return,” the person said.