UK advertisers increased mobile paid-search budgets 94% in 2012

As paid-search clicks on mobile increased in the UK during 2012 so advertisers increased their mobile paid-search budgets, according to Marin Software's Mobile Advertising Around the Globe Report.

by Helen Leggatt

According Marin Software, smartphones and tablets accounted for 14.8% of UK paid search in January 2012. By December that figure had risen to 24.4% of all paid clicks. The rise, they suggest, was fueled by an increase in the number of consumers using their mobile devices to research products and shop online.

Furthermore, click-through rates (CTR) on mobile were higher than on desktop. CTRs on smartphones averaged 5.87% in the UK and tablets 3.93%, while desktops generated only 2.29% CTRs.

Cost-per-clicks (CPC) also remained competitive compared with desktop - £0.15 compared to at £0.30 CPC on desktop.

Marin Software predicts conversion rates of search ads on mobile will, by 2013, match those on desktop. Meanwhile, conversion rates continue to be highest on desktops (average 4.1%) compared with smartphones (1.5%) and tablets (2.6%).

Currently, the UK has the highest mobile CTR in Europe, and is only second to the US internationally. It's no surprise, then, to note Marin's finding that, in 2012, UK advertisers increased their mobile paid-search budgets from 9.94% to 19.32% , an increase of 94%.

"There has been a significant uptake of smartphone and tablets in the UK, and this country now leads Europe in terms of consumer engagement with mobile advertising as we all increasingly shop online on mobile devices," said Jon Myers, Commercial Director, EMEA at Marin Software.

"While the rise of tablets is no secret, what's interesting is based on our report, tablet users engage with search ads more than ads on desktops. A high user involvement combined with favorable performance characteristics make search ads on tablets hard to resist for advertisers."