Paid Search Advertisers Jump Onboard iPad and Tablet Devices

Share of paid search spend on iPad and tablet devices increased 40% quarter over quarter driven by consumer adoption and favorable performance characteristics

San Francisco, CA July 12, 2012 - Marin Software, provider of the leading digital ad management platform for advertisers and agencies, today released the findings of its U.S. Online Advertising Quarterly Report, which finds the share of paid search spend on iPad and tablet devices increased 40 percent quarter over quarter. Consumer adoption and favorable performance characteristics drove higher investment among paid search advertisers in tablets. According to the report, the share of clicks resulting from smart phone and tablets grew from 14 to 18 percent during Q2.

Marin Software’s U.S. Online Advertising Report consists of key trends and statistics uncovered through an examination of the Marin Global Online Advertising Index. The Marin Global Online Advertising Index is comprised of data from more than 1800 large-scale advertisers and agencies that collectively spend in excess of $4 billion annually on biddable media through the Marin platform.

News Facts:

• During Q2 the share of paid search clicks in the U.S. resulting from mobile devices increased from 14 to 18 percent. Smart phones accounted for 10 percent of paid search clicks and tablets 8 percent. Share of clicks on tablets grew 33 percent quarter over quarter.
• Compared to ads shown on desktop and laptop computers, paid search ads on tablet devices continue to show favorable performance levels. The cost per click (CPC) for paid search ads run on tablets is 18 percent lower than that of ads run on computers. Also, the click-through rate (CTR) for paid search ads on tablets is 42 percent higher than ads appearing on computers.
• The share of paid search budgets directed to tablet campaigns increased 40 percent quarter over quarter. In March, paid search advertisers spent 5 percent of their budgets on tablets and by June increased it to 7 percent.
• For Google, on a year over year basis, clicks increased 13 percent, impressions grew 10 percent, CTR increased 3 percent and CPC remained flat.
• On Yahoo! and Bing, advertisers saw 14 percent higher click volumes, coupled with a 22 percent jump in CPC and 5 percent increase in CTR.
• Marin Software’s U.S. Online Advertising Report also includes paid search findings specific to industry verticals, including Automotive, B2B, Education, Finance, Healthcare, Retail, and Travel.

The full report can be downloaded at: marinsoftware.com/resources/whitepapers/q2-2012-online-advertising-report.

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Quotes:

• “Right now, advertisers are getting the best of both worlds on tablets. The combination of high user engagement and favorable ad performance characteristics is a win-win for marketers,” said Matt Lawson, Vice President of Marketing and Partnerships at Marin Software. “To capitalize on the window of opportunity savvy advertisers will become more device conscious, implementing campaigns directly targeted at tablet users. Revenue acquisition management platforms like Marin Software will be key in facilitating advertisers’ cross-device campaigns.”