Advertisers Devote More of Paid Search Budgets to IPad, Tablets

As the iPad and other tablets grab more of consumers’ attention, so too are the devices attracting more of marketers’ money.

Marin Software, which helps manage the ad campaigns of more than 1,800 advertisers and agencies, examined their spending in June and found some interesting numbers that bode well for the tablet market.

Among them:

  • U.S. online paid-search advertisers spent 7 percent of their budgets on ads targeting tablets, up from 5 percent in March. That’s still small compared with desktop and laptop computers, which accounted for 86 percent of search ad spending. Still, that’s a quarter-over-quarter increase of 40 percent. “Advertiser adoption of tablet devices for paid-search advertising is accelerating,” the report said.
  • Search ads targeting tablet users seem to be more effective than ads served to computers. While only about 2 percent of consumers would click on a search ad on their desktop PC, 3.2 percent click on similar tablet ads, and 5.2 percent click on ads shown on smartphones, Marin found.
  • Advertisers pay about 78 cents each time a consumer clicks on a PC ad, but 64 cents for an ad shown on a tablet, and 49 cents for an ad shown on a smartphone. So, search ads for tablets, as well as smartphones, are not only clicked on more, they’re less expensive, according to Marin.

“As these devices become more widespread and marketers develop smarter targeting strategies, we expect to see an ever increasing percentage of ad spend funneled towards smartphones and tablets,” Marin said in the report.

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