Recently, BIA/Kelsey released its U.S. mobile local advertising forecast, which revealed that search is the largest mobile local revenue component and will be through the forecast period of 2016. It is also estimated that U.S. mobile local advertising will grow 54% from 2011 to 2016.
These results speak to the rapid changes we have recently seen within the local search space, most notably in mobile. Google reported that “50% of mobile searches have local intent,” up 10% from 12 months ago. Not only do we see local results on the SERP take up more than one-fourth of the page (depending on the searches), but a large amount of advertising is currently focused on targeting ads to users based on their location.
As mobile usage drastically increases, advertisers are staking their claim. According to Smart Insights, mobile Internet is set to exceed desktop Internet usage by 2015. Google stated that mobile searches quadrupled in the U.S last year as well. With this kind of growth rate, advertisers everywhere are constantly seeking out the latest trends and best ways to reach users on their mobile devices.
On February 1, 2012 Facebook filed for its initial public offering. In the aftermath, people have questioned what the IPO will mean for Facebook users and advertisers, with the most significant issue concerning how Facebook will capitalize on its mobile market. Facebook recently reported that 425 million (more than half) of its monthly users are accessing the site from mobile devices. However, they have not yet begun monetizing their mobile market. Industry experts have expressed concern over this lack of utilization of mobile possibilities, as it is a significant risk factor for the Facebook IPO. As mobile usage continues to grow, it will become essential for Facebook to develop a way to monetize its mobile platform.
By Natalie Kleopfer, Account Coordinator
Looking to enhance your local and mobile advertising efforts? Learn how Google’s new updates can help.
On October 19th, Google unveiled several new mobile ad features and formats that will have a significant impact on pay-per-click (PPC) advertisers. Here’s a rundown of some of the key changes:
The distance between a user and an advertiser’s business is now factored into mobile search ad rankings. Local already accounts for 40% of mobile searches and the addition of proximity as a scoring factor will only cause that percentage to rise. Search Engine Land suggests that marketers start using Location Extensions, a feature in AdWords that allows the addition of dynamic addresses to ads. While previous ads only allowed description lines and a URL, Location Extensions lets companies include their names, addresses and phone numbers, too. This, combined with the new proximity factor, will help businesses drive more mobile traffic at a lower cost.
Another new Google feature is custom search advertisements for apps. Google will now place relevant ads in searchable mobile apps. If a user has an app that lets them search for a local movie theater, he or she will now see relevant movie theater and film advertising within the app.
Circulars, a new Google advertising format, is not restricted to mobile. Here’s how the new format works: When a user clicks on a search or display ad, he is directed to another ad featuring pictures and relevant products or offers. If the ad is viewed on a desktop computer, the user can email it to his mobile device. He can then take it to the business location to redeem the offers. This format is currently being tested with retailers Best Buy and Macy’s.
For more information about Google’s new offerings, visit the Google Mobile Ads Blog.