Mobile Paid Search on Track for Exponential Growth

Earlier this year, analysts predicted a surge in mobile ad growth. Now the numbers are rolling in to support those projections. In the just-​completed mobilesearchsecond quarter, smartphone users were clicking on mobile ads faster than marketers were upping their budgets. This report comes from IgnitionOne, a company that reports on search and other digital marketing trends. In addition, eMarketer projections suggest that mobile search won't be slowing down anytime soon.

Marketers spent 106% more this past quarter, compared to the same period last year, on mobile search. At the same time, consumers increased their clicks on these devices by 135% and impressions increased 82%. For tablets, the spending increase was 116%, the click increase was 91%, and impressions rose 104%. As a result, the smartphone cost per click (CPC) dropped 13% while the tablet CPC rose 13%. Marketers are eager to reach consumers on tablets and allocated 59% of mobile paid search to that format, versus the 41% allocated to smartphones. The reasoning behind this strategy is linked to the extra screen space on tablets. Consumers who are using their tablets might be more inclined to click through on an ad and make a purchase in this easier-​to-​use format.

These growth rates have led eMarketer analysts to project at least a 50% annual increase in paid search through 2015. The firm’s analysts believe that, in another 4 years, mobile will account for more than half of all search spending.

How is mobile paid search working out for you this year? Have you increased your spending significantly? Are you seeing higher click rates?

[Sources: Research White Papers. IgnitionOne​.com. 2013. Web. 19 Jul. 2013; Advertisers Double Down on Mobile Paid Search. Emarketer​.com. 12 Jul. 2013. Web. 19 Jul. 2013] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.