Study: Mobile Marketing & Paid Search Advertising

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A recent study published projects mobile paid search advertising revenues in the US, which includes iPads and other tablets, could account towards 22% of total search revenues. (chart inside)

Published by Efficient Frontier (EFF) and Macquarie Capital, the study provides further insight into where businesses are shifting their advertising dollars; not just from traditional channels to online, but also how digital budgets are being allocated to each marketing channel.

Mobile Paid Search Advertising Revenue Chart

EMarketer also presented their forecast with total search ad revenues in the US reaching over $17 billion in 2012, and noting that tablets already account for a significant portion of mobile search ad spending and mobile clicks.

Efficient Frontier report shows a strong consumer attraction to tablet devices, with the past three months tablets as iPad, PlayBook and others showed for 43% of Efficients mobile search spend, and 50% click share.

Obviously Google is the big winner of mobile search revenue growth compared to its rivals, and further evidence support by StatCounter Google dominates 95% of browser based mobile search in North America.

Bottom line results from the report shows the average CPC on mobile phone search campaigns produced moderately (8%) higher than CPC for desktop search campaigns. And while the mobile and tablet CTR were higher than desktop search campaigns at 166% and 13%, the bottom line conversions were lower. The mobile search campaigns resulted in ROI est. at 50% of the ROI for desktop campaigns. While the report sheds light on higher usage, but lower response on mobile paid search advertising campaigns, the mobile space has seen a strong upward usage trend  where in 2010 mobile ROI was only ~10% of desktop usage vs the 50% of desktop campaign ROI.

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