Google Inc (GOOG): Mobile ad prices increases at a rapid price
There has been concern about whether search ad prices are dropping. Marketers seem to prefer to have advertisements tailored for people looking for content with smartphones and tablets. According to a report from online management company Marin Software, mobile search ad prices in the U.S. are increasing at a rapid pace.
The increase is believed to 21% growth on smartphones and 23% on tablets. This is almost double the 11% rise in computer-based search ad prices. The conversion rates on smartphones and tablets increased throughout the last year.
The conversion rate on smartphones and tablets increased by 57% and 67%, respectively. This is compared to 36% on computers. Smartphone ad clicks remains around 30% cheaper on smartphone ads than clicks on computers. Tablets are around 8% cheaper.
Mobile search will account for half of all paid search clicks in the next year, which is up from 34% at the end of last year.
Google Inc (NASDAQ:GOOG) controls around 90% of the search ad market so these numbers could directly affect revenues at the Mountain View tech giant.