Tablets attract paid search ad spending

17 July 2012

NEW YORK: Tablets are increasing their market share in the area of paid search advertising, reflecting a growing preference for these devices among consumers.

Marin Software, the advertising management service, drew on data from its index of over 1,800 brands and agencies, focusing on those operators spending more than $1m per year on web ads.

Overall, it found that the proportion of paid search budgets allocated to devices like Apple's iPad and Amazon's Kindle Fire had reached 7%, compared with 5% in March, a 40% lift.

"Right now, advertisers are getting the best of both worlds on tablets. The combination of high user engagement and favourable ad performance characteristics is a win-win for marketers," said Matt Lawson, VP, marketing and partnerships, at Marin Software.

"To capitalise on the window of opportunity savvy advertisers will become more device conscious, implementing campaigns directly targeted at tablet users."

Not only had marketers raised their adspend on tablets, but the share of clickthroughs yielded by these devices expanded by 33%, to 8%.

Smartphones are also playing an increasingly important role, delivering 10% of clickthroughs on paid search ads, despite receiving a smaller 7% of revenues. Such figures stood at 82% and 86% respectively for computers.

When discussing, clickthroughs, tablets posted an average performance total of 3.2%, behind the 5.2% registered by smartphones, but ahead of the 2.1% secured by computers. The cost per click for devices like the iPad came in at $0.64, versus $0.49 smartphones and $0.78 for PCs.

In the UK, tablets attracted an 8% share of spend, beating smartphones on 5%.

For clickthrough rates, smartphones recorded 5.7%, with tablets on 4.4% and computers on 2.7%. Cost per click rates were just £0.15 for smartphones, half the amount for the other two mediums monitored.

Across the eurozone, tablets generated a 5% share of all paid search clicks, exactly matching their position in expenditure terms. Again, smartphones over-performed, on 2% of spending and 5% of clicks.

Clickthrough rates for slates hit 4.5%, measured against 4.9% for smartphones and 2.9% for PCs. Smartphones' again had the lowest cost per click in the region, at €0.18, half that of the other channels assessed.

Data sourced from Marin Software; additional content by Warc staff