U.S. mobile search spend to be 22% of online ad spend in 2012

Mobile search spend to be 22 percent of
online ad spend in 2012, according to Macquarie Group.

Mobile spend is 6.5 percent of all search
spend, up 270 percent from a year ago.

Return on Investment for search on mobile
devices has climbed in 2011 but remains less than half of desktop search.

Tablet usage has increased substantially
and is half of all click share on mobile devices and conversion rates on
tablets are comparable to that of desktop search.

Tablets have made 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 16-22 percent of all paid search share.

“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,” said David Karnstedt, CEO of Efficient Frontier.

Tablets took up 43 percent of the mobile
device spend share in the last 3 months from August to October 2011.

Additionally, Cost Per Click (CPC) of
mobile phones is 108% compared to desktop search but tablet CPCs are 85 percent
compared to desktop. This represents an opportunity for marketers to capitalize
on opportunities in the tablet market. Click-through rates of mobile phones and
tablets are 166 percent and 137 percent that of desktop, respectively.

“As an update to our last report in March,
mobile ad spend continues to be a sector with a lot of momentum because of
increased consumer usage in both smart phones and tablets,” said Ben Schachter,
senior analyst, Macquarie Securities.

Comparing the spread of traffic throughout
the day, all devices start to show increase usage at 8 A.M. when people start
their day. However, in the evenings, the patterns are different. Mobile phones
peak first at 7 P.M., followed by desktop at 8 P.M. and then tablets at 10 P.M.
Tablets are used when people wind down at home towards the end of the day
watching TV hence its traffic peak the latest among the three types of devices.

The companies will also explore emerging
connectivity technologies and effective ways to integrate vehicles with the
home to provide a seamless connection across all areas of people’s lives.

By Telecomlead.com Team

[email protected]