Smartphones and tablets are transforming paid search advertising; conversion rates on smart mobile set to match those of desk-tops
February 12th 2013. Smartphones and tablets are rapidly transforming the paid search advertising industry. According to a report released by Marin Software, provider of a leading revenue acquisition management platform for advertisers and agencies, in January 2012 smart mobile (tablets and smartphones combined) accounted for 14.8 per cent of UK paid search and by December had risen to 24.4 per cent of all paid clicks. This surge was fuelled by consumers’ increasing use of smartphones and tablets to conduct research and shop online.
Marin predicts the conversion rate of search ads originating from smart mobile will match those from desktop in 2013.
As advertisers battle for consumer wallet-share, ad budgets are increasing in line with the rise in cost-per-click (CPC) of ads served on smart phones and tablets.
• Marin found that paid search clicks on smart mobile increased by 65 per cent during 2012
• The report shows that the UK, with a 24.4 per cent share of smart mobile paid clicks, outstrips the Eurozone at 14.5 per cent
• Marin found that the UK has the highest smart mobile click through rate (CTR) in Europe, and is only second to the US internationally
• During 2012, Marin’s data indicates UK advertisers increased their smart mobile paid search budgets from 9.94 per cent to 19.32 per cent , an increase of 94 per cent
• Marin found that Eurozone advertisers increased their investment in smart mobile paid search from 4.8 per cent to 11.8 per cent
• Marin predicts that Cost per click (CPC) for smart mobile will come in line with desk-top in 2013
• The report indicates that early UK adopter traffic resulted in a 36 per cent increase in the cost per click (CPC) for tablets
• Marin Software’s annual report, “Mobile Search Advertising around the Globe,” outlines key trends, projections and optimisation strategies for advertisers seeking to get the most from their mobile paid-search campaigns.
• “This study indicates in no uncertain terms that the age of desk-top dominance in the paid-search advertising is coming to an end,” said Jon Myers, Commercial Director, EMEA at Marin Software.
“There has been a significant uptake of smartphone and tablets in the UK, and this country now leads Europe in terms of consumer engagement with mobile advertising as we all increasingly shop online on mobile devices.”
• Myers continued: “While the rise of tablets is no secret, what’s interesting is based on our report, tablet users engage with search ads more than ads on desktops. A high user involvement combined with favourable performance characteristics make search ads on tablets hard to resist for advertisers.”
Read Marin’s full report here.
Global Online Advertising Trends. Marin provides a leading revenue acquisition management platform used by advertisers and agencies. Offering an integrated platform for search, social, display, and mobile marketing, Marin helps advertisers and agencies improve financial performance, save time, and make better decisions. Headquartered in San Francisco, with offices worldwide, Marin’s technology powers marketing campaigns in more than 160 countries.