The rapid proliferation of “smart” mobile devices such as iPhones and iPads is changing the way in which consumers search, shop and interact with brands & products.
The emergence of high-powered mobile devices is now incubating another revolution. According to industry analysts, Mobile advertising is soaring and growing in sophistication. Mobile owners are being targeted by interactive videos and offers that are tailored to users depending on their tastes and whereabouts as revealed by their online activity. This can be seen as latest and effective trend in digital marketing catering to a wider consumer base.
In this smart phone-enabled world, the customer is more aware and smarter than pre-smart phone era. For instance, mobile devices have revolutionized modern shopper’s experience by providing instant access to product reviews, prices, competitors, offers and coupons. This implies that a mobile search is closer to the purchase point than desktop search, and is therefore more competitive and valuable.
The big change is that the devices can now identify and locate the customer, allowing advertisers to make personalized offers using existing data and information flowing in from the smartphone or tablet. If you search for apparels on a mobile device in the evening while you are in the street, is not the same query as it on a desktop while sitting on the sofa at the same time. In one case you will be sent to the nearest beauty shop, in the other to an online store.
According to marketing firm Marin Software, the average paid search ad click-through rate for Marin Software’s U.S. clients in 2012 was 2.28% on desktop computers, 4.72% on smartphones and 3.12% on tablets.
It’s important to note that conversion rates for tablet devices are improving relative to desktops and smartphones. In 2012, tablets saw a 31% increase in conversion rates, compared to 9% for smartphones and 7% for computers.”
The effectiveness of search ads on tablets climbed 31 percent in 2012. Last year, the conversion rate of tablet search ads was 3.3 percent versus 3.9 percent for desktops. Advertisers have also increased their share of search budget on mobile devices from 10% to 18.4% in 2012. This basically means that search ad prices on tablets will equal those on desktops very soon, although they are currently 17 percent lower. The report noted that advertisers are already spending more money on tablets than on smartphones.
The global adoption of mobile devices is dramatically changing the paid search landscape. This is especially true for tablets. Marin’s findings note that tablets will continue driving a larger share of paid search ad clicks in 2013. And with consumers increasing their use of tablets to research goods and services, and make purchases. Marin predicts that tablet conversion rates will surpass those of desktop computers by the end of 2013. This calls for a renaissance in digital advertising asking for larger budgets and innovation in mobile advertising.