April 30, 2012
We recently revealed the findings of our third Digital Index Report which shows that digital advertising continues its rapid growth across all channels.
Jonathan Beeston, our director for new product innovation, believes that the latest findings indicate social is on the rise and an important channel in the UK, however search is still the key driver of digital marketing ROI. He says: “With the emergence of tablets, mobile creates a new opportunity for search investment with efficiency gains to marketers overall program, at least in the short-term. This is really reflected in the UK with mobile spend now accounting for 11 percent of all search spend.”
During Q1 2012 mobile spend on search grew by 250 percent YoY in the UK as traffic on mobile devices, specifically tablets, increased four-fold. Mobile spend now accounts for 11 percent of all search spend in the UK (higher than in the US which accounts for eight percent) while tablets alone assume 4.25 percent of total search spend. Mobile devices and tablets are lower cost channels and ultimately contributed to Google’s Cost Per Click (CPC) decline of five percent YoY.
By the end of 2012 it’s predicted that tablet and mobile spend will make up 15 to 20 percent of all search spend. Indeed, investments in tablet advertising will grow as the number of users rapidly increases. Conversion rates on mobile devices are comparable to desktop performance even though mobile CPCs are 30 percent lower. Furthermore, current trends indicate that tablets may cannibalise smartphone and desktop search spend as investments continue to shift to tablets.
Another key trend highlighted in the report is the growing spend on social, particularly within Facebook. Indeed, spend on Facebook increased by 93% YOY, which on a relative basis represents 3% to 5% of search spend proving it continues to be a strong market.
For more info check out our Digital Index Infographic below.