Tablets Poised to Become a Key Driver of e-Commerce

Consumer purchasing on tablets fueling rapid growth for search ads; conversion rates set to eclipse those on desktop computers

SAN FRANCISCO, CA February 12, 2013 – Tablets are fast becoming an e-commerce powerhouse. According to a report released today by Marin Software, provider of a leading revenue acquisition management platform for advertisers and agencies, tablets will drive 20% of Google’s paid search ad clicks in the US by December 2013, up from 10.7% in December 2012. Fueled by consumers’ increasing use of tablets to make purchases and research goods and services online, Marin predicts the conversion rate of search ads originating from tablets will eclipse those of desktops before year end.

News Facts:

• Consumer adoption of tablets is driving growth in paid search clicks. During 2012, Marin Software found the share of overall paid search clicks served by Google on tablets increased from 6% to 10.7%. Marin projects by the end of 2013 that tablets’ share of paid search clicks will nearly double, accounting for 20% of Google’s US paid-search ad clicks.
• Consumers are increasingly turning to tablet devices to research goods and services, and make purchases online. Marin Software’s report indicates conversion rates on search clicks originating from tablets increased dramatically in 2012 -- rising 31% -- while the conversion rate on smartphones increased just 9% and desktops just 7%. By December 2013, Marin estimates that conversion rates from tablet ads will surpass those of desktop ads.
• In addition to rising conversion rates, Marin Software found tablet ads have favorable performance characteristics relative to desktop ads. Marin’s data indicates click-through rates (CTR) for search ads on tablets were 37% higher than ads placed on desktop searches, and the average CPC for paid-search ads on tablets was 17% lower than that of desktops in 2012.
• Favorable performance characteristics of tablet ads coupled with high consumer adoption are driving advertiser investment and rising costs-per-click. Marin found that the share of search ad spend directed towards tablets grew from 4.8% to 10% in 2012 with spend on tablets eclipsing smartphones for the first time in Q4 2012. According to Marin, the CPC of tablet search ads increased 25% in 2012, and Marin predicts tablet CPC will equal desktop CPCs by the end of 2013.
• Marin Software’s annual report, “Mobile Search Advertising around the Globe,” outlines key trends, projections and optimization strategies for advertisers seeking to get the most from their mobile paid-search campaigns.

Quotes:

• “While the rise of tablets is no secret, what’s interesting is tablet users are engaging with search ads and converting in ways that closely resemble desktop usage,” said Matt Lawson, Vice President of Marketing and Partnerships at Marin Software. “Solid user engagement combined with favorable performance characteristics make search ads on tablets hard to resist for advertisers.”