Tag: google ads

Google says mobile ads benefit from gadgets with larger screens

As the focus shifts to a multi device experience the search engine giant is making a number of considerable discoveries.

Mobile ads are a relatively recent component of the overall strategy at Google and, following its recent shift to focus on being more friendly to smartphones and tablets, and the technology giant has been developing a massive amount of insight about this advertising channel, particularly since “mobile-geddon”.

This insight seems to be guiding the company well, according to its senior vice president of ads and commerce.

That individual, Sridhar Ramaswamy, has explained that the company is handing its move to a multi device experience well. He has pointed out that selling mobile ads to advertisers could be more challenging when the majority of those advertisements end up on mobile devices, because they have screens that are smaller than standard desktops and laptops. Marketers hesitate because many consumers find it to be a hassle, or not adequately secure to follow an ad to the point that they will actually make a purchase.

However, Google is working hard to make sure that it can halt the slipping prices of its mobile ads.

Mobile Ads Benefit from Larger Screens - iPad TabletThe Wall Street Journal recently released a report that underscored Google’s efforts to improve the value of its advertising options. It has found that it can greatly benefit from the recent shift in the mobile technology toward the use of devices with larger screens.

Two of the devices that have effectively shown that consumers are interested in smartphones and mobile devices that have larger screens include the iPhone 6 and iPhone 6 Plus, which were launched by Apple, last fall. Similarly, the flagship Google smartphone that was recently released, the Nexus 6, features a large 5.9 inch screen.

While addressing the topic of mobile ads, Ramaswamy said that “As phones get bigger the space issue becomes less challenging.” He added that “This is essentially a tablet. People’s ability to navigate sites and fill out forms and such goes up tremendously,” as he withdrew his own Nexus 6 device to illustrate the point that he was making. These larger screen size trends, combined with the new data storage at Google, described in another Wall Street Journal report, indicate that the company is making every effort to overcome the decreasing willingness of marketers to pay for advertising on mobile screens.

Mobile marketing continues to be a struggle for Google

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.