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.