Click Through Rate from mobile ads are 2.7 times higher than from a desktop, and cost per click 60% lower, research by Efficient Frontier showed in its UK Mobile Search Report.
However as mobile ad competition increase, as in the US (ad spending for the US and UK in 2010 was US$743m and US$135m respectively), mobile CTR has dropped to 30% lower while CPC increased 13% higher.
These paint the following scenarios:
1) Initial stages
Factors that might explain the higher CTR as compared to desktop ads in this stage:
- Mobile ads are very prominent, 2 ads can occupy almost the entire screen of a handphone
- No right-hand column ads, which have lower CTR
- Lesser ads to compete with
- Consumers are still not used to ads, leading to more accidental clicks
2) Competition Increases
The 3rd and 4th factors no longer apply as number of ads increase and consumer simply scroll through the ads.
What does this mean for advertisers?
This suggests that advertisers should take advantage of the initial stages with its higher CTR in their digital marketing efforts.
If the goal is brand awareness, this does seem true.
For results based measurement though, it is the cost per conversion that matters. This is because the quality of the clicks needs to be taken into account as the higher CTR might be due to “consumers are still not used to ads, leading to more accidental clicks”.
More of this in another post.