Paid-Search Ads Influence Mobile's Growth4 Apr, 2012 By: Jackie Jones
SAN FRANCISCO – Mobile is expected to contribute 25 percent to total paid-search ads by the end of this year, up from last year’s 12 percent, according to the latest data from Marin Software. Additionally, U.S. mobile campaigns will make up about 23 percent of Google’s paid-search ad revenue, showed “The State of Mobile Search Advertising in the U.S.,” which focused solely on Google’s network.
Smartphone users click through on ads at a much higher rate than consumers on desktops, according to Matt Lawson, vice president of marketing at Marin.
“The small screen on the phone only allows for one or two at the top, not six to 10 down the right rail,” Marin noted. “When Google renders results from a query, the paid ad may take up as much as two-thirds of the screen.”
The significant increase in paid-search clicks in mobile continues to rise, driven particularly by changes in device adoption and consumer behavior, according to Marin Software. For example, Lawson notes that users do not scroll down to view content lower down on screens as much as in the past.
Additionally, tablets will account for 45 percent of all mobile clicks by the end of this year, and smartphones and tablets’ click-through rates are 72-percent and 31-percent higher when compared with desktop computers, Marin’s report showed.
While Marin found there are fewer ad impressions across newer devices, the cost-per-click on smartphones and tablets was much lower when compared to desktop computers. Smartphone clicks clock in at 36-percent less expensive and tablet clicks were 24-percent less costly, according to Marin.
Earlier this year, Marin reported that mobile and tablet users account for 10 percent of all U.S. paid-search advertising clicks during the fourth quarter of 2011, doubling results seen in third-quarter 2011 (Response This Week, Jan. 18).
“In Q4 2011, we saw paid search marketers allocate a larger portion of budgets to mobile devices than ever before,” Lawson said at the time. “Given the favorable performance characteristics of mobile advertising today, we expect this trend to continue as advertising dollars begin to chase consumer behavior.”