July 27, 2012
A window of opportunity has opened in the digital advertising market as the industry waits for the full impact of the tablet revolution to affect Cost Per Clicks (CPC).
Figures from Adobe’s Q2 2012 Global Digital Advertising Update show that while conversion rates for tablets are 120 percent higher than those for PCs, CPC rates are markedly less than desktops or laptops, 30 percent less in fact.
With the vast majority of tablet users fitting the iPad owning demographic – tech savvy and with a healthy disposable income – brands have a unique opportunity to run highly-targeted campaigns across tablets, and smartphones, that will deliver greater ROI thanks to the lower rate CPC.
“Despite incredible sales of the Apple iPad, the tablet itself is still a relatively nascent technology,” believes Jonathan Beeston, Director of New Product Innovation at Adobe. “Historically CPCs have been lower for mobile devices as the user experience is constrained by screen size, device speed etc. Tablets don’t have these problems, yet they are still being viewed as a mobile device hence the lower CPC than PCs.”
American data in the report puts ROI for tablet advertising spend as high as 160 percent against PCs (with mobiles at 103 percent) reaffirming the belief that brands can realise significant impact and value by switching to mobile, at least in the short term.
“It’s a case of making hay while the sun’s shining,” adds Beeston. “With a slew of competitively priced, high quality devices like the Kindle Fire, Google Nexus and Microsoft’s Surface about to hit the mass markets, the situation will normalise as brands raise their budgets for advertising on tablets and the CPC rates follow suit.”
The report also shows that search advertising continues to grow, with search spend in the UK up 18 percent, Year over Year (YoY). Additionally, growth rates for search spend were strong in the US and Germany, seeing a 13 percent and 12 percent increase YoY respectively.
Finally, brands are continuing to invest heavily in Facebook to drive fan growth, with 21 per-cent Quarter over Quarter (QoQ) and 84 percent YoY growth worldwide. Facebook engagement among brands also grew by 60 percent QoQ and 338 percent YoY.
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