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Google Says Advertisers Don’t Spend Enough on Mobile Advertising

January 27th, 2013

Google reveals that only 5% of search advertisers are taking full advantage of the benefits of mobile advertising and investing the right amount of cash into their mobile advertising campaigns. This was based on an interesting article recently featured on Search Engine Land about mobile advertising data gathered by the search engine giant.
According to the data released by Google, 95% of advertisers are losing out on sales and high ROIs because they continue to manage their mobile advertising campaigns in the same way as their PC and laptop campaigns, and because they refuse to invest more money in this area of online marketing.
Author of the article, Greg Sterling, explains that only 55% of online advertisers invest in mobile advertising campaigns and only 5% of this 55% use phone extensions as part of their mobile advertisements. This, according to Google, Wordstream and DataPop, is one of the biggest online marketing errors of 2012.

What does Google have to say about mobile advertising?

Google has made it clear on a number of occasions that all advertisers should:

  • invest in mobile advertising campaigns if they want to increase sales
  • separate PC pay per click campaigns from mobile network campaigns
  • use call extensions on all mobile network advertisements

What do internet users want to do when searching on mobile devices?

It’s really important to take into account the different desires and interests of the internet user who sits behind a desk on a PC, and compare it with the user who stands in a busy bus, connecting through their mobile phone.
In general, the research that Google sponsored and shared by Sterling on Search Engine Land shows that when using mobile devices, internet users always want to be able to perform the following actions:

  • 76% want to get information on store location or opening hours
  • 61% want to be able to just click to call the store in one swift move
  • 54% want to be able to send an email
  • 53% want to download an app
  • 48% want to be able to click and land on the store’s social networking page
  • 41% want to be able to play video clips

Few people want to actually make a purchase online via a mobile device, but that doesn’t mean that mobile advertising does not drive customers down the conversion path so that they can then convert at a later date.

What mistakes are most advertisers making when analyzing mobile network campaigns?

Just because internet users don’t convert that often on mobile devices doesn’t mean investment in mobile advertising should be curtailed.
Dave Schwartz from DataPop believes that few marketers “connect a transaction to a mobile click.” He continues to explain that when they cannot link conversions to clicks “they’re not willing to pay as much for mobile clicks.”
The lack of clarity in seeing the true advantages of mobile advertising, and how these campaigns generate more conversions on PCs or in stores at a later date than most people give them credit for, will be the downfall of many advertisers in 2013 and the winning trump card for the few advertisers who are seeing things clearly.

What kind of damage is caused?

If you make no time for your mobile network campaign because you look at the conversion rates, and you foolishly believe that low conversions mean internet users are not being persuaded to buy via the mobile network, you might be causing terrible damage to your brand’s online reputation without knowing it.
Because you see no conversions from your mobile network campaign, you probably reduce the amount of money you spend on it and fewer people see your advertisements. This means that fewer people visit your site to find about your products and services.
However, this is not the worst that could happen…
You invest little time and energy in mobile advertising too, and this means that you are unaware of problems like slow page loading times, breaks in URL links, or out-of-date copy on your mobile network landing pages. In short, your mobile network campaign and site starts to look like a deserted building, with squatters moving in and interested buyers going elsewhere.
The mobile network is HOT and if your mobile pages affect the customer’s user experience, your brand’s image is terribly damaged in an instant.
The Google-sponsored research reveals that:

  • 96% of internet users visit sites that aren’t mobile-friendly
  • 74% say that they’re more likely to return to a site if it is mobile-friendly
  • 55% confirm that a frustrating mobile experience damages their opinion of the brand in question

The facts are there. Mobile advertising contributes to online and offline sales, and internet users love to go mobile. High conversions are not the only way of proving the worth of a paid search campaign. Think outside the box a little. Think mobile! Contact us for more information on mobile website design and mobile network pay per click campaign management.