Marin Software's official blog

Get Ready to Ditch Your Wallets

Maria Breaux
|
September 9, 2014

In the US, more than 166 million people – 53% of the population – own a smartphone. We carry them with us wherever we go. So, it’s no surprise smartphones are a key target of advertisers and e-commerce providers. The vision of smartphones replacing wallets is just too good to pass up. Case in point, Apple just announced Apple Pay payment solution in conjunction with the iPhone 6 launch.

But just how likely are consumers to use their phones to make purchases outside of a new app or scheduling an Uber pickup? To gauge consumer interest in using smartphones to complete transactions, we thought we’d take a look at the performance of Google Product Listing Ads (PLAs) on smartphones and desktops.

PLAs are unique in that they are predominantly used by retailers to showcase a product; so, we aren’t seeing consumers react to ads for services or information. Also, unless you’re in the market for a new Razor Scooter, odds are you aren’t going to search and click on an ad for one. Consequently, PLAs are a good barometer for getting a pulse on consumer online shopping behavior.

First off, the click-through rate (CTR) of PLAs on smartphones is higher. The gap varies, but more recently in June, 2014 the CTR of smartphones was 33% higher than desktops. This would indicate consumers seem to favor their smartphones for browsing and researching products. Makes sense. For the last few years, the story has been that smartphones are used to research but when it comes time to pulling the trigger, the transaction either takes place on a desktop or in a store. A smartphone is rarely used to complete the transaction.



To answer that question, we looked at the conversion rate of PLAs for smartphones versus desktops. Since these are ads for specific products, the likelihood of a conversion rate for a PLA being a transaction is very high. Desktops still rein king when it comes to completing transactions with a conversion rate 135% higher than smartphones in June; however, what’s interesting is the growth in conversion rate on smartphones.

Year over year, the conversion rate for PLAs on smartphones has increased 120%. But what does this mean? It means consumers are completing more transactions on their smartphones. This is likely due to not only familiarity and comfort with doing so but also retailers and technology providers like Google making the transaction process easier and much more mobile friendly.

Get ready to ditch your wallets.

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