Performics Mobile Search Benchmarks & Trends (Q1 2012)

Performics Mobile Paid Search Benchmarks & Trends(Q1 2012) 1

Mobile Paid Search Spend Surges in March  Mobile paid search spend is now 17.8% of all paid search spend  Many advertisers “warmed up” to mobile and increased investment to catch trends  Mobile spend volume is close to 5X higher YoY  Tablets are 32.1% of mobile spend 2* Based on Performics’ aggregate client base; Google AdWords (Content & Search Partners excluded) (April 2012)

Mobile Impression Share Peaks in March at 18.6%  Driven by an increase in tablet impressions, mobile impression share is now at an all-time high Tablets are now 39.6% of all impressions This is a 12.1% M/M increase 3* Based on Performics’ aggregate client base; Google AdWords (Content & Search Partners excluded) (April 2012)

What’s Driving Advertiser Interest in Tablets? Tablet and smartphone users differ, motivating advertisers to segment by device in terms of strategy (day-parting, messages) & budget allocation Smartphones: your constant companion – shopping/errands – looking for store location, phone; click-to-call – product reviews/comparisons in store – geo check-in Tablets: your couch companion – entertainment with families – watching TV – in bed 4

Mobile Click Share Also Reaches All-Time High  Breaking records set over holiday, mobile paid clicks are now 24.6% of all clicks  In terms of mobile click volume, Mar. 2012 is only behind Dec. 2011  Tablets are now 36.5% of all clicks 5* Based on Performics’ aggregate client base; Google AdWords (Content & Search Partners excluded) (April 2012)

Where is This Growth Coming From?Is Mobile Cannibalizing Desktop? Mobile is exploding, but not at the expense of desktop We see desktop search volume growing, just not nearly at the pace of mobile This is a function of the always-connected searcher: – Searchers aren’t abandoning their desktops in favor of mobile – They search on their desktops at work, smartphones on the way home, and tablets at night in front of the TV But, given the similarities in experience and that most tablet users are tethered to Wi-Fi, tablets and laptops are sharing some territory 6

Over Time, Device Will Be Just a Signal Searchers are de-tethering from the office/home/desktop People are searching in entirely new places, in the middle of new exchanges and processes and with entirely new needs Device will become merely a signal. Whats increasingly important is understanding the context, the specific audience and its intent. 7

With Low CPCs, Mobile Is Still a Buying Opportunity  Tablets CPCs are 85% of desktop CPCs  Smartphone CPCs are 55% of desktop CPCs 8* Based on Performics’ aggregate client base; Google AdWords (Content & Search Partners excluded) (April 2012)

Is Mobile’s Growth (with its Low CPCs) HurtingGoogle’s Bottom Line? Mobile search continues to take a larger piece of the search pie (especially due to localization) Mobile CPCs remain lower than desktop Therefore, overall (desktop + mobile) Google CPCs dropped in Q4 and Q1, causing concern for Google investors But the better indicator of Google’s health is click volume. Even if CPCs drop, click growth results in higher revenue for Google. Plus, lower CPCs give advertisers more opportunity for efficiency 9

Mobile CTRs Continue to Outpace Desktop  Mobile CTRs increased 9.8% M/M and 25.2% Y/Y  March’s mobile CTR increase was driven by mobile devices (i.e. smartphones) rather than tablets – Mobile device CTRs increased 18.2% M/M – Tablets decreased 2.1% 10* Based on Performics’ aggregate client base; Google AdWords (Content & Search Partners excluded) (April 2012)

What’s Driving Mobile CTRs Above Desktop?  In March, mobile CTRs were driven by smartphones  Google is increasingly providing advertisers with more opportunities for enhanced listings on smartphones:Sitelinks Click to Call Product Ads Location Extensions Offer Ads Click to Download  On the smaller smartphone SERP, enhancements occupy more space (not to mention, users don’t scroll like on desktop and tablets). Thus, CTRs rise. 11

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Performics Mobile Search Benchmarks & Trends (Q1 2012)

by Performics on Apr 27, 2012

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