Study: Advertising expenditure for mobile will overtake desktop by the end of 2015

Driven by the fact that consumers are adopting mobile devices so quickly and at the same time clicks and conversions on mobile ads are increasing rapidly, advertisers will spend more on mobile ads than desktop ads by the end of 2015, according to the report. It also shows that consumers use mobile devices to search for products, but still make most online purchases via desktop. It is therefore essential for advertisers to adapt their cross-channel advertising strategies to reach consumers across devices and platforms.

The benchmark study "Mobile Advertising Around the Globe: 2015 Annual Report" contains statistics and trends uncovered by analyzing the Marin Global Online Advertising Index. The index is based on advertising data from leading global brands that control and manage digital advertising campaigns worth more than 7 billion US dollars per year via the Marin platform. The data represents all major industries and 13 countries and regions, including the US, UK, Eurozone, Japan and China.

The key findings of the "Mobile Advertising Around the Globe: 2015 Annual Report" by Marin Software:

Mobile SEA shows a meteoric rise

Between January and December 2014, the proportion of SEA clicks via mobile devices rose from 32% to 44%. It is expected that by the middle of the fourth quarter of 2015, clicks from paid search via mobile devices will account for more than 50 percent of the total SEA market. In response to this trend, advertisers are expected to spend more on mobile search ads than on desktop search ads by the end of 2015.

Research on mobile, buy via desktop

Although mobile is growing, the report shows that consumers tend to use mobile devices to search for products and click on mobile ads, but ultimately complete the purchase on desktop. The click-through rates (CTR) of mobile search ads average 2.7 percent, while the average CTR for desktop ads in search is 2.1 percent. The same pattern applies to mobile social ads (0.6 percent CTR) and mobile display ads (0.4 percent CTR). However, when it comes to conversion, desktop is still the leader. Search ads on desktop had an average conversion rate of 10.3 percent, social ads on desktop 1.1 percent and desktop display ads 3.1 percent. In comparison, mobile conversion rates reached 7.1 percent (search), 0.4 percent (social), 2.6 percent (display).

The rise of Mobile Display

Clicks on mobile display ads grew by 60 percent between January and December 2014. At the beginning, they amounted to 32%, at the end to more than 50%. At the end of the year, the majority of clicks on display ads came from smartphones and tablets. Once again, smartphones took clicks away from desktop PCs. The share of clicks almost doubled between January and December 2014. If these trends continue, the percentage of clicks on display ads from smartphones only (not including tablets) will make up the majority of digital display clicks by the beginning of the fourth quarter of 2015.

Mobile already dominates social media

Mobile devices already account for the majority of spending on social ads. More than 55 percent of social advertising budgets are spent on smartphone and tablet campaigns. It is no wonder that companies are investing heavily in mobile ads. Because they work. 62 percent of all clicks on social ads come from smartphones and tablets.

Mobile video advertising on the rise

While consumers still mainly watch videos on desktops, mobile devices are catching up fast. Data from eMarketer shows that smartphones and tablets accounted for 30 percent of all online video views in the third quarter of 2014. This percentage is on the rise.

"The rise of mobile is amazing. But it's important to remember that most people jump back and forth between desktop and mobile devices multiple times when researching or purchasing products," says Matt Ackley, CMO of Marin Software (pictured). "Our new data shows that advertisers need to adapt their strategies to reach consumers across multiple channels. To do this, they need to utilize tools that allow them to accurately attribute mobile ads. Clicks on mobile ads do not always lead directly to conversions. But they very often influence purchases made via desktop or in-store."

For additional insights and data on Global Mobile Advertising, download the "Mobile Advertising worldwide: 2015 Annual Report" from Marin Software: http://bit.ly/1GYbSq3