Posted March 28, 2012 8:33 am by with 0 comments

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Mobile is rising faster than anyone anticipated and that’s good news for all kinds of marketers. The recently released “State of Mobile Search Advertising in the US” report by Marin, shows the click growth over the past year.

If mobile continues on this path, Marin estimates that mobile will account for 25% of all paid-search clicks on Google by the end of this year.

Most of the reason for the growth is the corresponding growth in smart phone ownership. It’s estimated that when you combine Android and iOS, there will be one billion phones in play sometime before the summer of 2013.

But it’s not just smart phones. It looks like tablets will be delivering almost half of all the mobile paid-search clicks by the end of this year. That’s really something, given that tablets are not yet common, household devices.

Now here’s a little good news, bad news. Mobile and tablets have a higher click through rate than ads on the PC.

The cost per click on mobile devices is also cheaper, so it’s a real bargain!

Or not. The bad news is, even though click rates are high, conversions are low.

Average smartphone conversion is only 2%. Tablets come in a 4.9%, better, but still not as good as a PC’s 5.2%.

The reason for this can be found in the “why.” Why does someone use a phone to search rather than a PC? Usually, it’s because they’re on the move. So a click through for a nearby electronics store could result in a $2,000 TV purchase, but in-store, not through the phone. The PC user is likely at home or work with time to browse. A click there, could result in that same purchase through the retailers website. Voila! Conversion.

The lesson here is that cross-marketing is a must. It doesn’t matter how attached we get to our smartphones, we’re still going to use the web for more detailed browsing.

The tablet is another story. Since it more closely resembles the actions of a PC than a smart phone, it could become a real contender as soon as they become more popular.

Want to know more about the future of mobile advertising? Ask Marin nicely and they’ll happily send you the full report.