The brave new world of mobile marketing is set to explode in 2012. Mobile search budgets at the end of 2011 will have a seven to 10 percent increase over end of 2010 budgets.
According to a recent report from the Macquarie Group:
- Mobile spending is 6.5 percent of all search spending, up 2.7 times (270%) from 2010.
- Return on Investment for search on mobile devices has climbed rapidly in 2011 but remains less than half of traditional desktop search.
- Tablet usage has increased substantially and is now half of all click share on mobile devices and conversion rates on tablets are now comparable to that of
- Tablets have made major inroads in retail where 77 percent of all mobile traffic is coming from tablets.
- By the end of 2012, tablets and smart phones are predicted to be between 16 and 22 percent of all paid search share.
The study also found consumers’ usage of desktop, mobile phones and tablets increased when people started their day at 8 a.m. Evening usage between devices shifted with mobile phones peaking at 7 p.m., desktops at 8 p.m. and tablets at 10 p.m. The theory is people leave work around 7 p.m. and use mobile phones on the way home. Tablets are used at home towards the end of the day and that’s why they peak the latest.
Advertisers trying to get the most bang out of their mobile marketing bucks must understand how consumers view their products on multiple devices.
To spend your mobile marketing dollars successfully, your brand experience must be positive in three areas:
1. Mobile friendly sites: With greater usage of mobile devices, brands will have to maintain a user-friendly presence across all devices. Mobile conversion rates double from their previous rates after they are optimized correctly.
2. Attribution: A purchase that begins with a mobile device often ends on the desktop. As a result, the ROI on the mobile campaign looks worse than it actually is. The smart advertiser will allocate advertising budgets across devices appropriately after accounting for attribution. Until now, this was not an urgent need as mobile traffic was a small fraction of overall traffic, but this is changing.
3. Tailored Advertising Campaigns: Advertisers have to reach the consumer across devices in a manner consistent with how these devices are used. For instance, mobile campaigns should focus on shorter words since query lengths are shorter.
“After years of false predictions, it looks like 2012 really will be the year of mobile… We are seeing incredible demand from our client base for mobile search advertising and today’s report demonstrates the strides mobile has made led in part by incredible rates in tablet adoption.”