Efficient Frontier clients currently allocate approximately 6-7% of their total online search advertising budgets to mobile search, representing almost triple the share from just one year ago, according to a November 2011 report from the Macquarie Group. Macquarie insight also predicts an even greater acceleration of this growth in the next year, with mobile phones and tablet search spending potentially accounting for 16-22% of search advertising budgets by the end of 2012.
According to data from Mobitrove, total US mobile advertising spend will reach close to $41 billion by 2015, compared to $6.3 billion 2010.
Tablets Narrow the Gap, Led by Retail
From August 2011 to October 2011, tablets accounted for 43.7% of Efficient Frontier’s mobile search spend, and just under half of click share. In fact, for the retail vertical, tablets accounted for 77% of mobile search spending during that time period, well above the 44% overall average. These retail advertisers may be looking to profit from the increasing use of tablets as a purchasing device: according to a study released in November by Jumptap in partnership with comScore, 63% of tablet owners have made a purchase using their device, compared to just 31% of smartphone users.
Google Dominates Search Ad Spend
Efficient Frontier that currently buy mobile search advertising on both Google and Yahoo/Bing spend over 96% of their mobile search ad budgets on Google, compared to just 3.8% for Yahoo Bing, according to the Macquarie Group report. Data from the report indicates this is virtually unchanged from a previous analysis in March, but notes that Yahoo has publicly estimated its share of budgets to be closer to the 10-15% range.
According to data released in October by IgnitionOne, Google accounted for 81.6% of all search advertising spend, while Yahoo/Bing fell to 18.4% of search advertising spend. Meanwhile, the latest comScore figures show Google Sites leading the explicit core search market in October with 65.6% of search queries conducted, up marginally from 65.3% in September. Yahoo remained in the second spot with 15.2% market share, down slightly from 15.5%.
About the Data: The Macquarie Group analysis was completed with an index built on data from Efficient Frontier’s search engine marketing customers. More than 3 billion monthly impressions representing 30 plus customers were analyzed for the report.