Conversion rate from mobile ads 7 times lower than desktop ads

In a previous post “CTR from mobile ads are 2.7 times higher than from a desktop“, we described that it would be best to do A/B testing using CPM and CPC models to find out what works best for your Google Adwords/YSM/Bing in your digital advertising campaigns.

From the same study that Efficient Frontier did, it was noted that mobile ads’ conversion rate are only 14% of desktop search ads.  Lower conversion rates reflect whether the needs of the person who clicked the ads have not been met that well, together with the finding from Google that “One out of every three search queries on mobile have local intent” means

Keywords chosen on mobile ads must fulfill local, immediate needs

Noting that “effective keywords have up to 5 times the CTR of desktop search” e.g. if a user thinking of having a massage does a mobile search with “reflexology choa chu kang”, the user will definitely be very interested in your services if yours happen to be in the vicinity of choa chu kang.  Point is campaigns should have dedicated keywords indicating location of your shop for mobile searches to get the best ROI.  Google Adwords allow campaigns to be directed at “mobile devices only”

This is even more important than the above.  Refer to the pictures below, feel the difference in impact when the user lands at your shop’s “services” page with lots of text, compared to a Google Map showing the location of your shop with contact number and address.

(Pictures for illustration purposes only, not actual mobile landing pages)

google campaign, mobile devices only

Mobile landing pages must be optimized and have local content e.g. shop location

optimized landing page

landing page not optimized

What does this mean for advertisers?

Advertisers who are able to provide local or urgent information searches should start advertising on mobile, and bringing users to mobile optimized landing pages to show them relevant information (more often than not, location info).