Mobile is transforming paid search, Marin Software report claims

Mobile is transforming paid search, Marin Software report claims

Engagement with mobile advertising nearly doubled last year, according to the latest report from Marin Software.

The technology specialist, which manages firms’ online marketing campaigns and works with a number of major travel customers including Tui Travel and easyJet, released its annual mobile report today.

It claimed the prevalence of smartphones and tablet is transforming the paid search environment among UK shoppers – a £6 billion industry.

Marin predicted mobile devices will account for 50% of all paid search clicks globally by December 2015.

Other key findings included:

  • Share of clicks coming from mobile search ads in the UK almost doubled across 2013, from 24% in January to 43% in December;

  • Paid search clicks on smart mobile increased by 78% during 2013;

  • Eurozone advertisers increased their investment in smart mobile paid search by 109%;

  • UK advertisers increased their smart mobile paid search from 22% to 35%, or growth of 58.2%.

During 2013, Marin’s data indicates UK advertisers increased the share of their search advertising budgets spent on mobile and tablets from 22% to 35%.

UK advertisers saw click-through rates (CTRs) significantly higher for mobile devices, relative to the eurozone – 5.71% compared to 3.83%.

However, smartphone conversion rates currently remained below tablet and desktop at an average of 2.79%, 4.60% and 6.09% respectively.

CPC has risen, with average CPCs on smartphones rising 26% to £0.19, and tablets growing less slowly to an average of £0.31, an increase of 11%.

Jon Myers, vice-president and managing director EMEA at Marin Software, said: “Advertisers are quickly adjusting their strategies to accommodate the ‘always-connected’ British consumer, who’s constantly on the go and whose shopping and product research behaviour is vastly different to anything we’ve seen before.

“It’s stunning how quickly smartphones and tablets have become an essential part of modern life.

“As advertisers battle for consumer wallet-share, their mobile strategies will need to become even more sophisticated to ensure they are optimising spend effectively in a world where the cost of mobile advertising is rising due to its popularity and effectiveness.

“For the first time, this year search marketers will be able to access audience data as well as contextual data like weather patterns to help them creatively address these challenges.”

The full Marin Software “Mobile Search Advertising around the Globe” annual report can be downloaded from its website.

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