6 Reasons ‘Large Advertisers Will More Than Double Paid Search Mobile Budgets in 2012’

Index finger and thumb spaced three inches apart, Matt Lawson touched the screen of his mobile phone to demonstrate how much real estate paid links take up in search results on the tiny device.

Lawson is vice president of marketing at San Francisco-based marketing software provider Marin Software, and that meant about two inches of organic results remained on his phone.

That’s part of the reason paid search is performing so well on mobile devices, he says, citing the findings of Marin’s report titled The State of Mobile Search Advertising in the U.S. Tucked in the meeting area of the Marin booth at SES New York, Lawson and Gagan Kanwar, senior product marketing manager at Marin, detailed the key findings of the report released on Mar. 26.

Here are the report’s key takeaways, explaining why Marin estimates that large advertisers will more than double their paid search mobile budgets in 2012:

  • By December 2012, smart mobile devices will account for 25 percent of Google’s paid search ad clicks in the U.S., up from 5 percent in January 2011;
  • Consumers are more engaged with paid search ads on smartphones and tablets, as evidenced by clickthrough rates that are, respectively, 72 percent and 31 percent higher than on the desktop;
  • Search ads on smartphones and tablets have higher clickthrough rates and lower costs-per-click than desktop computer ads;
  • The average cost per click for paid search ads on smartphones was 36 percent lower than on desktops; for tablets, it was 24 percent lower;
  • Paid search ads on tablets, in particular, proved more effective than ads on desktops, with an average of 25 percent lower cost-per-conversion; and
  • In Q4, Google estimated their mobile revenues were at a 2.5 billion dollar run rate, consisting of both search and display.

Heather Fletcher is senior content editor with Target Marketing.

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