Advertisers are experiencing greater click through rates from mobile search than desktop advertising, with CTR 2.7 times higher on average.
This is one of the stats from an Efficient Frontier study of mobile search trends, which also finds that the sector is growing rapidly.
Growth of mobile search advertising
While in June 2010, mobile search ads accounted for just 0.34% of total search spend, the figure has increased five-fold to 1.7% in March 2011.
The study predicts that spending on mobile search will continue to grow rapidly, and may account for 4.3% by the end of 2011.
Our UK Search Engine Benchmarking Report uncovered similar trends, with the proportion of companies using mobile search doubling from 8% in last year's report to 16% this year.
Mobile search cost per click
At the moment, cost per click from mobile search advertising is lower, at 60% of desktop CPC on average. By contrast, mobile CPC in the US is normally higher than desktop.
According to Efficient Frontier:
The difference between mobile CPC and desktop CPC varies widely between and within verticals – ranging between mobile CPC being twice as much as desktop CPC to desktop CPC being almost 4 times as much as mobile CPC.
This indicates how advertisers are using mobile advertising for different purposes – some aiming to maintain brand presence while others manage their mobile advertising spend based on ROI.
Click through rates
On average mobile CTR is 2.7 times as much as desktop CTR, though this varies between sectors. It can be as much as five times desktop CTR.
At the moment, the higher CTR may well reflect the fact that mobile search advertising is relatively new, and therefore those using it have less competition for clicks.
Conversion rates
CTR may be good on mobile search, but conversion rates are much lower, just 14% of desktop conversion rates on average.
It can range between 5% and 80% of desktop conversion rates, so there is a sign that it can be done properly. This is something advertisers can work on though, with landing pages and sites that are optimised for the smaller screen, as well as mobile checkouts.
For more, see the Mobile Search Snapshot from Efficient Frontier.
Graham Charlton is Editor at Econsultancy. Follow him on Twitter or connect via Linkedin or Google+.
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11:36AM on 18th May 2011
I assume you meant March 2011: 'While in June 2010, mobile search ads accounted for just 0.34% of total search spend, the figure has increased five-fold to 1.7% in March 2010. '
Editor at Econsultancy
1:09PM on 18th May 2011
Yes, corrected now. Thanks.
3:03PM on 18th May 2011
Would be interesting to get some insights as to why conversion rates are lower from mobile. My personal theory is that responders land on pages that are NOT optimised for mobile?
Editor at Econsultancy
3:10PM on 18th May 2011
Hi Helen,
I would think that's the problem. Even if landing pages are optimised for mobile, then the payment process can prove to be too great an obstacle.
8:59PM on 18th May 2011
Hi, the CTR doesn't have anything to do with being new or lower competition it is to do with how dominant the PPC ads are on mobile devices vs. desktop, which is to do with the single column layout (+ no right-hand column links) & lack of screen real estate.
Additionally, to get desktop conversion rates you need a proper mobile site and mobile-optimised checkout, which is not a prerequisite for mobile PPC bidding.
9:47PM on 18th May 2011
I was thinking exactly the same thing as Neil. PPC ads are so much more prominent on mobile devices hence the CTRs will naturally be higher. There still seems to be a real opportunity for advertisers drive more traffic from mobiles by creating specific campaigns and look to increase CTRs even further with tailored messaging as opposed to relying on desktop based ad copy.
Head of Tracking Technology at OMD
8:54AM on 19th May 2011
In regard to conversion rates,I would also add that mobile cookies are not as prevalent in the mobile space. Many conversions from mobile search will not be trackable in the same way as for online display. Apple devices by default only accept cookies from the page visited.
So users may be converting through mobile search, but we may not be tracking them.
There are ways around this, such as use of a 1st party analytics provider, but thought I would highlight that we need to question the metrics provided as well as the channel.
Managing Director at Mackerel Media
9:38AM on 19th May 2011
Given the wide variation in user experiences available on mobile devices, is there any more granular information showing how the CTR and CR rates vary from platform to platform? Likewise connection speed or 'environment' - someone searching on an android device on a bus on the way to work is likely to behave very differently to someone searching on an iPad whilst sitting on the sofa at home, for example.
Head of Online at Hiscox
10:09AM on 19th May 2011
An interesting piece that raises a couple of questions.
Should Mobile search be directing responses to a transactional website that is not optimised for mobile use, or is it better to drive responses directly to a call centre via Click to Call?
The conversion that's included doesn't appear to include offline conversions - an important consideration for more complex products/ services.
Editor at Econsultancy
10:38AM on 19th May 2011
I think, as the last few comments show, the stats raise as many questions as they answer.
I'll post more detailed stats as and when I find them.
Editor at Econsultancy
10:38AM on 19th May 2011
I think, as the last few comments show, the stats raise as many questions as they answer.
I'll post more detailed stats as and when I find them.
CEO at KODIME Ltd
10:58AM on 19th May 2011
Good point by Neil Y, and Joseph re cookies also - it still remains to be seen how the likes of Google will provide advertisers with opportunities that go beyond the 1-3 text lines on small screen - yes more impact / CTR for those ads that are "above the fold" on small screen, but no long tail. Same issues applies to SEO results - ever scrolled mobile search results on your iPhone/BB/HTC?
Founder at McCormack Morrison
1:20PM on 19th May 2011
@Ed Longley, I don't think they are the choices, companies investing in mobile PPC really should be investing in mobile landing pages.
Interesting article but really not surprising, the phone really is a transactional tool.
2:25PM on 19th May 2011
Does anyone have any links to surveys on what the main barriers to conversion are on mobile sites?
My guess would be:
1. Slow connection speeds / slow page-loading speeds.
2. Small screen making it difficult to navigate through checkout pages.
3. More difficult to type on mobiles, again, making checkout much more fussy.
Finally, does anyone have any evidence of successfully using mobile marketing for online retail? I have seen through our web stats that there is a much higher proportion of natural search traffic on mobile than desktop - about 45% vs 30%. The Direct load figures are the mirror image of that, my guess being that people don't use auto-type-ahead or faves as much on mobile. Either way, that makes natural search 50% more important.
Director, New Product Innovation at Advertising Solutions, Adobe
3:49PM on 19th May 2011
Great to see our data has created such debate! The promising thing is that no longer are we discussing whether mobile is a viable channel for transactions, rather the best way to exploit it.
@Joseph: if you're tracking mobile search via a redirect, then the iphone shouldn't have a problem accepting a cookie. At the time the redirect sets the cookie, it's 1st party. If you're doing it another way, such as with a 3rd party javascript on the landing page, I agree that you're missing data. I would imagine most of the world uses a redirect to track search. The iphone doesn't have a problem with the cookie being read during a transaction, even though it's now in a 3rd party context.
1:20AM on 9th January 2012
I'm confused on how to read this chart, is this saying that CPC's are 61% LOWER or HIGHER then compared to desktop?
Director, New Product Innovation at Advertising Solutions, Adobe
8:47AM on 9th January 2012
@Sara: The chart says mobile CPCs are 61% of desktop, so they are 39% lower.