Tag: google mobile marketing

Mobile marketing continues to be a struggle for Google

| July 23, 2014

The company’s quarterly results have revealed that it has yet to master this advertising channel.

Although Google has proudly held its position as central and key to online advertising as a whole, when it comes to mobile marketing, specifically, it is becoming increasingly clear that the search engine is having a hard time spanning the gap to the smaller screen.

Although consumers may be using their smartphones and tablets on an increasing basis, advertising to them is difficult.

Mobile marketing is not simply a matter of the same traditional digital advertising, only on a smaller screen. Formats that were used over desktops are providing an entirely different experience for smartphone and tablet users, and it’s not one that they like. The screen size restrictions and touch screens mean that old ads simply don’t carry over to the new devices. That said, Google has not yet been able to figure out exactly how to make its ad business shine as it has done for the desktop and laptop channel.

This has meant that Google is less capable of charging the same type of premiums for its mobile marketing ads.

mobile marketing - GoogleWhile this has been suspected for some time now, the recent release of the company’s earnings has only underscored the struggles that the company is facing as a result of this problem. The cost per click (the amount that an advertiser pays every time an ad is clicked) fell by 6 percent in the quarter that closed in June, when compared to the same quarter in 2013. This has been blamed on the increasing shift toward mobile advertising.

The decline in the ad prices was only the latest in an overall two year trend in that direction for Google. That said, further analysis was not made possible based on the released data as Google does not provide a breakdown of ad revenue based on desktop versus mobile channels.

Google is not alone in its struggle to break through the mobile marketing challenge and come out shining. Nearly all of the major players have found that the transition to multichannel marketing that will appeal to various forms of device user has involved quite the bumpy road and that the various gadgets and screen sizes are presenting far different requirements than had been initially expected.

Mobile marketing share at Google being lost to Facebook

| March 27, 2014

A recent news report issued by eMarketer has suggested that the social network is eating into the search engine giant’s share.

The size of the global mobile marketing share from Facebook, which had been just over $3 billion, last year, is now maintaining a steady climb and is expected to start to cut into the share that had previously been held by Google, said eMarketer in a report that it issued in recent news.

Combined, Google and Facebook make up more than 66 percent of the global mobile ad spend.

That figure is as of 2013, the latest complete year of data. That increased by more than double to reach $17.96 billion, when compared to the same statistic for 2012. At the same time, eMarketer’s mobile marketing report was quick to point out that “Google still owns a plurality of the mobile advertising market worldwide, taking a portion of nearly 50 per cent in 2013, but the rapid growth of Facebook will cause the search giant’s share to drop to 46.8 per cent in 2014, eMarketer estimates.”

Mobile marketing revenue at Facebook was worth 53 percent of Facebook’s overall ad revenue in Q4 2013.

This was a massive rise when compared to the year before. In fact, the portion of the mobile ad revenue rose by 23 percent from where it had been in the same quarter in 2012. Revenue from advertising, overall, had been 2.34 billion in the last quarter of last year.Mobile Marketing - Facebook Mobile

The report pointed out that the size of the market share at Facebook in particular is getting larger. In 2012, it represented only 5.4 percent of the worldwide ad market. Last year, that had risen tremendously, to bring it to 17.5 percent of the global advertising market. The prediction that the report made for this year was that it will reach 21.7 percent by the time that it comes to a close.

The speed with which smartphone based advertising has taken over the ad revenue for the social network is indicative of its future. In 2012, only 11 percent of the net global ad revenues at Facebook were over the mobile marketing channel. Last year, that ballooned to 45.1 percent.