Mobile search spending growing faster than you'd expect

New Telsyte research claims almost 30 per cent of total Australian paid search advertising is being served on smartphone and tablet devices

Mobile search advertising is experiencing faster growth in Australia than most people realise, and now represents almost 30 per cent of the total paid search links being served, a new report claims.

In a reflection of the strong focus marketers are putting on mobile marketing, new research from Telsyte predicted Australian mobile paid search spending will reach $430 million this year, or about a quarter of the estimated $1.74bn paid search market.

The report complements a new Asia-Pacific mobile marketing report compiled by the Mobile Marketing Association, which found 90 per cent of marketers expect their mobile marketing budgets to rise sharply in the next year, with app development and mobile display ads their preferred channels.

A recent Interactive Advertising Bureau (IAB) online advertising report also found mobile is outpacing other categories in terms of growth and increased 190 per cent year-on-year to 30 June. Tablet-based advertising was also found to be exceeding smartphone spending and represented 58 per cent of total spend.

During Q2, Telstra found nearly 30 per cent of paid search links were served onto mobile devices, and predicted this rising to 33.3 per cent by Q4. The analyst group also said the mobile paid search market is growing at a 17 per cent compound quarterly rate, with tablet expected to generate $240m, or 56 per cent, of the total market in 2013.

“Mobile device search advertising is growing faster than most observers realise,” Telsyte research director, Foad Fadaghi, said. “Notwithstanding the difficulties in measuring mobile search, many advertisers are serving their search ads on tablets and smartphones by default following changes to Google’s targeting options.”

Telsyte also forecast mobile will represent more than half of the Australian paid search market by 2017 and become the largest digital advertising product segment nationally by 2018.

Among the main usage scenarios for mobile paid search advertising in Australia are simple transactional offers, local search, in-store research and purchase, as an important path to purchase, and for products and services typically sold via telesales or call centres. The analyst group claims there are 14 million smartphone and 7 million tablet users in Australia.

Telsyte also claimed the ROI from mobile search advertising has not yet reached the level of desktop search overall, although some categories such as local, have shown a higher ROI.

“The ROI for mobile search needs to be expanded beyond just measuring online sales but other metrics, such as offline sales and other factors that are important in the path to purchase,” the report stated.

“Mobile search marketers need to accept that conversion metrics are different on smartphones and tablets. While tablet metrics are closer to desktop search, there are still differences particularly around user engagement.”

Telsyte’s findings included comparing numbers against public reports available from companies managing search spend globally along with Google Australia.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, or join us on Facebook: https://www.facebook.com/CMOAustralia

Signup to CMO’s new email newsletter to receive your weekly dose of targeted content for the modern marketing chief.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

Non-linear transformation: The internal struggle

Let’s face it, transformation is messy. Every business is different, with a set of specific challenges based on a mixture of external (the market, competitors, regulation) and internal factors (technology, people and process investments over time).

Neil Kelly

Partner, transformation, Wunderman Thompson

7 ways to champion a human centred design culture

Human Centred Design (HCD) has come a long way in the last decade with many forward-thinking organisations now asking for HCD teams on their projects. It’s increasingly seen as essential to unlocking innovation, driving superior customer experiences and reducing delivery risk.

Shane Burford

Head of research and design, RXP Group

Building a human-curated brand

If the FANG (Facebook, Amazon, Netflix, Google) sector and their measured worth are the final argument for the successful 21st Century model, then they are beyond reproach. Fine-tuning masses of algorithms to reduce human touchpoints and deliver wild returns to investors—all with workforces infinitesimally small compared to the giants of the 20th Century—has been proven out.

Will Smith

Co-founder and head of new markets, The Plum Guide

It's a useful info for small businesses owners. We can't live without mobile apps. They are so helpful! It's hard to deny that.

Mae Davis

7 ways small businesses can benefit from mobile apps

Read more

Hi Jennifer,Fascinating read about design-led companies!If you would like to learn more, our Design Thinking and Innovation programme mig...

Andrea Foster

How to spot a ‘design-led’ versus ‘design-fed’ company

Read more

ABC web-site not easy to use/navigate. Even getting this far in sign-on to ABC My Space was problematic - it was asking for my password,...

Vee.

How the ABC used an online community to help build a movement

Read more

Thank you for your feedback, Astha! Always appreciated.

Vanessa Skye Mitchell

5 things marketers should know about data privacy in 2020

Read more

Hey Vanessa, thanks for providing us the things marketers should know about data privacy. This was really an informative post.

astha sharma

5 things marketers should know about data privacy in 2020

Read more

Latest Podcast

More podcasts

Sign in