Mobile

Advertisers will spend $1.4B less on desktop search ads this year, but mobile search will climb 82%

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Not surprisingly, as consumers move to mobile, so do the advertising dollars.

In a report published today, eMarketer estimates that desktop ad search spending will drop by $1.4 billion, or 9.4 percent less than last year. Meanwhile, mobile search spending will get a huge 82 percent boost to reach $9 billion.

[We'll be exploring the changing world of mobile advertising at our Mobile Summit next month.]

The figures follow the overall trends for both ad categories: Desktop search ad growth has been declining steadily over the past few years. Mobile search ad spending, on the other hand, has more than doubled its growth over the past two years (see chart below).

emarketer mobile desktop search adsMostly, we’re seeing advertisers catching up to some very obvious consumer trends. People — especially those who buy expensive products — are spending much more time now searching on their smartphones on tablets. Mobile shopping is becoming more widespread as well, so those mobile-centric consumers are getting used to acting on ads right on their devices.

In general, mobile ads also offer up more interesting techniques for advertisers, since they can be tied to your location in real-time. That ultimately gives them a level of relevancy that desktop search ads can’t quite match.

Also, mobile search ads can offer more opportunities for creativity and deeper integration with content.

For example, Yahoo’s newly launched Gemini product, a “unified marketplace” that marries mobile search and native advertising.

“By bringing the two together, advertisers can now buy, manage, and optimize their mobile search and native ad spend in one place — driving greater performance and higher impact for their businesses and brands,” wrote Jay Rossiter, senior vice president of Yahoo’s cloud platform group, and Adam Cahan, senior vice president of mobile and emerging products.

Speaking broadly, the mobile advertising market is still nascent, but it’s heating up quickly, with more and more mobile marketing startups popping up every week.

Overall, mobile advertising is expected to be a $40 billion market by 2018.

More information:

Google's innovative search technologies connect millions of people around the world with information every day. Founded in 1998 by Stanford Ph.D. students Larry Page and Sergey Brin, Google today is a top web property in all major glob... read more »

Yahoo! is the premier digital media company. Founded in 1994 by Stanford PhD candidates David Filo and Jerry Yang as a way for them to keep track of their personal interests on the Internet, Yahoo! has grown into a company that hel... read more »

Bing is a search engine that brings together the best of search and people in your social networks to help you spend less time searching. Bing is for people who do; for people like you who are always doing more. Whether online or on... read more »

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