Mobile Beats Desktop on Paid Searches

Association of Strategic Marketing
March 24, 2014 — 1,415 views  
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More paid searches will be carried out on mobile gadgets rather than desktops, according to a new research report published by Marin Software, an online ad management platform. Over a third of all paid searches on Google were made on mobile gadgets in December last year. According to Marin’s 2014 report, by the end of next year, 50 per cent of Google’s paid searches will be on mobile.

Google data

All through last year, clicks of paid search advertisements almost doubled, while accounting for a little over 20 per cent of all clicks. The study analyses data of Google’s performance among advertisers who use paid searches of the former. In this set of big-time advertisers, the share of mobile spending went up in the United States by 45 per cent between January and December last year, to reach an overall percentage rise of 27.9 per cent.

Yet, average conversion rates (paid searches) in the United States for tablets outpaced the desktop for the first time last year. Conversion rate of smartphones are still behind other gadgets at 4.4 per cent. Conversion rates on computers were 5.3 per cent while those of tablets was 5.5 per cent. The rate growth y-o-y on mobiles was at 57.1 per cent, on tablets at 66.7 per cent and desktops at 35.9 per cent.

eMarketer study

Last year, 19 per cent of search engine Google’s revenues came from search advertisements on mobile phones. Revenues are predicted to increase over the next three years to 30 per cent, according to market research by an independent research firm, eMarketer. The company also says that 63.4 per cent of Facebook’s digital advertisement revenue will come from mobile. Two years back, this figure stood at 11 per cent of revenues worldwide, while last year, it rose to 45.1 per cent.

Who’s ahead, Google or FB?

The eMarketer report points out that Google is actually behind Facebook on the mobile front. The international market for mobile revenues from ads went up over two-folds last year, to $17.96 billion, and is projected to touch $31.45 billion this year. While Google’s earnings data shows that revenue from ads is going north, the money it got for every click dropped.

Overall, these studies show the increasing levels of comfort among users of smartphones to carry out online transactions; advertisers who sense this boost in confidence will be encouraged to invest in mobile-related marketing and paid searches.

Association of Strategic Marketing