Mobile on Pace to Surpass Desktop Paid Search on Google by End of 2015
Marin Software finds tablet conversion rate surpasses desktop’s rate for the first time, solidifying mobile’s presence in the transaction process
SAN FRANCISCO, CA March 19, 2014 — As mobile adoption and engagement continues to rise, so does its significance in the digital marketing industry. A new report by Marin Software (NYSE: MRIN), provider of a leading Revenue Acquisition Management platform for advertisers and agencies, forecasts that by December 2015 mobile devices will account for 50% of Google paid search clicks. Conversion rates of paid search ads on smartphones and tablets indicate consumers are increasingly using mobile devices to complete transactions – a task traditionally carried out on desktops.
Marin’s data predicts the continued popularity of smartphones and tablets combined with advertisers’ increased investment in these devices will give rise to mobile as the primary channel for search.
The benchmark report, “Mobile Search Advertising Around the Globe: 2014 Annual Report,” includes statistics and trends uncovered through an examination of the Marin Global Online Advertising Index. The index consists of advertising data from leading global brands that manage more than $6 Billion in annualized paid search spend through Marin’s platform. The dataset represents all major industry sectors, and 13 countries and regions, including USA, UK , Eurozone, Japan and China.
- According to eMarketer, global smartphone penetration currently sits just above 60% and by 2015 tablet sales will exceed desktop computer sales. As smartphone and tablet adoption climbs, mobile devices will become the primary avenue for advertisers to reach consumers. Marin Software predicts by the end of 2015 mobile devices will account for 50% of paid search clicks on Google.
- As evidenced by click-through rates, Marin Software finds consumers are more likely to engage with search ads on mobile devices than desktops. In 2013, the average U.S. click-through rate (CTR) of smartphones and tablets were respectively 64% and 18% higher than the average desktop CTR.
- Marin Software found the conversion rate of search ads on mobile devices increased in the U.S. during 2013, indicating consumers are more comfortable with mobile commerce. The conversion rates of smartphone and tablets increased 57% and 67%. In 2013, tablet conversion rates (5.5%) edged out desktop conversion rates (5.3%) for the first time.
- While the average cost per click (CPC) of search ads on smartphones and tablets remained lower than desktop CPCs, Marin Software found smartphone CPC increased 21% and tablet CPC rose 23% in 2013. The relative increase in smartphone and tablet CPCs point to growing competition among mobile advertisers.
- Marin Software’s report, “Mobile Search Advertising Around the Globe: 2014 Annual Report,” outlines the key trends, projections and optimization strategies for advertisers seeking to get the most from their mobile paid-search campaigns. The full report can be downloaded at: marinsoftware.com/resources/whitepapers/mobile-search-advertising-around-the-globe-2014-annual-report.
- “We’re at the cusp of mobile becoming the dominant channel in search marketing,” said Matt Ackley, chief marketing officer at Marin Software. “Consumers are becoming much more comfortable using their smartphones and tablets to complete transactions online, and as we see that comfort level rise advertisers will follow suit with continued investment and optimization in mobile.”
This press release contains forward-looking statements including, among other things, statements regarding the growth of paid search ads on mobile devices, particularly with respect to Google Paid Search. These forward-looking statements are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors, including but not limited to adverse changes in general global economic or market conditions; delays, reductions or slower growth in the amount spent on online and mobile advertising; and unforeseen developments in the digital advertising industry generally, technological changes; competition; and the fact that the digital advertising market is an emerging market and rapidly evolving. These forward looking statements are based on current expectations and are subject to uncertainties and changes in condition, significance, value and effect as well as other risks detailed in documents filed with the Securities and Exchange Commission, including our most recent reports on Form 10-K and current reports on Form 8-K that we may file from time to time. Marin Software assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this release.