This Decade Mobile Rules – Search to Lead US Mobile Ad Revenue
A recent Online Media Daily article touted search as the dominate revenue generator on mobile devises in 2012. Not surprisingly, outpacing SMS, mobile display and other forms of opt-in messaging. Basically, their saying it’s better (aka more profitable) to reach a consumer who raises their hand (mobile devise in this case) and says I’m searching for X.
I believe the real change will come in the number of ads that are shown on the mobile handset. Now the interesting conundrum is the fact is they’ve got such a small footprint to work with. Currently you’ll see two paid ads (above the fold) on the mobile handset, which drives the cost per click way up in many cases (sometimes 2-3 X of what you’re seeing on the desktop). We’re also seeing (in many cases) marketers NOT breaking mobile out from the desktop search campaign so the spend must be crazy!
That being said, there are many more advertisers that would love to grab some of this search traffic which brings me back to a development that needs to occur, how do you enable more search listings on a very small footprint? Some form of dynamic ad? Push organic listings down to incorporate two more?
So instead of saying, “this is the year of mobile”, maybe we can all pat ourselves on the back and all get it right by saying, “Yup, I called it, this is the decade of mobile.
Steven Jacoby, Managing Director, Search and Media Strategy