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

4 creative skills that will be useful forever

In recent times, the clarion call from futurists, economists, marketers, educators and leaders the world over is one of slight panic, “The world is changing and you’re not ready for it!” And of course, they make a very good point.

Kieran Flanagan and Dan Gregory

Speakers, trainers, co-authors

Why defining brand strategy is vital to capitalising on quick wins

Big brands were once protected from small brands by high barriers to entry. Big brands had the resources to employ big agencies, to crack big ideas and to invest in big campaigns. They had the luxury of time to debate strategies and work on long-term innovation pipelines. Retailers used to partner with big brands.

Troy McKinnna

Co-founder, Agents of Spring, Calm & Stormy

3 ways to leverage the talents of your team to avoid disruption

​According to the World Economic Forum in its most recent The Future of Jobs report, the most important skills for the future are not technical, task-oriented skills, but higher-order skills such as creativity, social influence, active learning, and analytical thinking.

Gihan Perera

Futurist, leadership consultant

I thought this was what Salesforce Audience Studio (formerly Salesforce DMP) was supposed to do. How are a CDP and a DMP different? I'm c...

Tony Ahn

Salesforce announces customer data platform

Read more

Well written Vanessa!! Agreed with your view that human experience is marketing's next frontier. Those businesses who are focused on the ...

Clyde Griffith

Forget customer experience, human experience is marketing's next frontier

Read more

Great tips for tops skills need to develop and stay competitive

Nick

The top skills needed to stay competitive in a rapidly changing workforce

Read more

The popularity of loyalty programs is diminishing, though I'd say it is because customers are savvy enough to recognise when a loyalty pr...

Heather

It’s time for marketers to rethink their approach to ‘loyalty’

Read more

Thanks Nadia for sharing this blog. It has really useful and amazing information about Salesforce Commerce Cloud and digital engagement w...

Holly Smith

Adidas taps data and technology smarts to build personalised digital engagement with consumers

Read more

Latest Podcast

More podcasts

Sign in