Mobile Search Ad Spend Up 150%

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Mobile Search Ad Spend Up 150%

As the world continues to get better connected, due to the availability of smartphones and other mobile devices such as tablets, it is important for advertisers to realise that consumers tend to interact more and more with various brands and ads on their mobile devices.

This assumption has been confirmed by studies in the USA that show that in January 2011 mobile devices accounted for only 5.3% of all clicks on Google. In contrast, just 12 months later in December 2011 mobile devices accounted for 12% of all clicks on Google. This increase of 132% is substantial to say the least.

Comparing the share of clicks on device by region

Comparing the share of clicks on device by region. Source: Marin Software

The good news is that ad spend on mobiles has kept pace with this increase and has gone up from 3.4% to 8.7% during the same period. This is an increase of 156%.

It is being predicted that mobile devices will account for 25% of all paid-search clicks on Google by December 2012, and at the same time ad spend on mobiles will account for 23% of Google’s paid-search spend.

Comparing the share of ad spend on device by region

Comparing the share of ad spend on device by region. Source: Marin Software

This sudden rise in mobile paid search as well as mobile ad-spend can be attributed to the unprecedented increase in adoption of smartphones and other devices such as tablets.

It is being estimated based on current figures that the number of smartphones in use globally will touch 1 billion between December 2012 and June 2013.

When increasing the ad-spend on mobile devices, advertisers will have to keep in mind the fact that while the cost per click on mobile devices and on tablet devices is less than on desktop computers, the conversion rates are considerably lower on mobiles than on desktops and tablets.

Though tablets are not yet as common as desktops and Internet-connected mobile devices they are growing in popularity and are providing the best overall return on ad spend. Advertisers should keep this fact in mind while planning their ad budgets in future.