In short term PPC of India shift to Leftward. Because in India there is billion dollar of black money. In starting of demonetization (short period) India face many problems. ... In short run It will effect the ppc and it will shift leftward as the indirect tax's will be removed and the supplier will decrease production.

The Impact of Demonetization on PPC

Demonetization refers to the act of stripping a currency unit of its status as legal tender. In the case of India, demonetization occurred in November 2016, when the government announced the invalidation of ₹500 and ₹1,000 currency notes. This move had a significant impact on various sectors of the economy, including Pay-Per-Click (PPC) advertising. Let's explore the effects of demonetization on PPC in detail:

1. Decreased Consumer Spending
- Demonetization led to a temporary shortage of cash in the economy, causing a decrease in consumer spending.
- With limited cash in hand, people focused on meeting essential needs, reducing discretionary spending.
- As a result, businesses that relied on PPC advertising experienced a decline in demand for their products or services.

2. Reduced Advertiser Budgets
- Due to the decrease in consumer spending, many businesses faced financial constraints and had to cut down their budgets, including their PPC advertising budgets.
- This reduction in advertising spend resulted in fewer ads being displayed, leading to decreased competition in the PPC auction.
- As a consequence, the cost per click (CPC) for keywords and ad placements decreased, making PPC more affordable for businesses that continued advertising.

3. Changes in Keyword Demand
- Demonetization brought about significant shifts in consumer behavior and preferences.
- People started looking for alternative payment methods such as digital wallets and online transactions.
- This change in behavior altered the demand for certain keywords in PPC campaigns, as businesses had to adapt their targeting strategies to align with the evolving consumer preferences.

4. Increased Focus on ROI
- With limited resources, businesses became more cautious about their advertising investments.
- The scrutiny on returns on investment (ROI) intensified, and businesses started closely monitoring the performance of their PPC campaigns.
- This led to an increased emphasis on optimizing ad campaigns, improving ad copy, and targeting the right audience to maximize the ROI from PPC investments.

5. Rise of Online Transactions
- Demonetization acted as a catalyst for the adoption of digital transactions in India.
- As people increasingly turned to online payment methods, businesses had to adapt their PPC strategies to capture this growing market.
- PPC campaigns shifted focus towards promoting online transactions, digital wallets, and e-commerce platforms.

In conclusion, demonetization had a mixed impact on PPC advertising. While it initially caused a decrease in consumer spending and advertiser budgets, it also led to changes in keyword demand and increased focus on ROI. Moreover, the rise of online transactions presented new opportunities for businesses to leverage PPC advertising.