Mobile Paid Search: Dial Up Your Online Marketing Results

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1 Mobile Paid Search: Dial Up Your Online Marketing Results May 2011 Mobile Paid Search: Dial Up Your Online Marketing Results

2 Part I: An Emerging Opportunity Mobile marketing has been one of the most anticipated trends in search for the last several years. Since the mainstream adoption of smartphones, it s become increasingly apparent that mobile should be an essential component of most any search marketing strategy. The enthusiasm behind mobile marketing has only increased in recent years as smartphone market share grows rapidly, mobile search queries multiply, and Google, Apple, and other key industry players compete to stake their plot in the mobile landscape. With their enhanced browsers and faster processing speeds, smartphones provide users with a more dynamic experience and offer marketers new opportunities to take their mobile and online campaigns to the next level. Mobile marketing provides a highly targeted, inexpensive, and immediate connection between marketers and their customers at every point within the purchase funnel. Whether customers are shopping for a new television, searching for a local auto shop, or buying basketball tickets from their phone, mobile marketing helps advertisers inform and influence them with the right information, the right offer, and the optimal conversion path. Since 2007, the growing popularity of smartphones has driven much of the growth in mobile search. As of the third quarter of 2010, the Nielsen Company reports that 28% of U.S. mobile subscribers now have smartphones. 1 Nielsen also predicted that by the end of 2011, 51% of the U.S. population will operate a smartphone. 2 The surge in smartphone ownership has sparked a dramatic increase in mobile search traffic over the last two years. Google reported a 300% jump in mobile searches year-over-year from January 2010 to January Even more striking is the 400% increase Google reported in mobile search traffic from 2009 to Google anticipates that over the next 18 months between 15% and 30% of marketers search traffic will come from mobile devices. 5 What s important about mobile search traffic isn t merely the numbers, but also the quality of the traffic generated by a younger, more affluent smartphone demographic. The majority of U.S. smartphone subscribers are between the ages of 25 and 44, and more than 50% of Android users are under the age of Smartphone subscribers are also wealthier than traditional mobile device users. According to a report published by Nielsen in 2010, over 50% of smartphone users make over $75,000 a year, and over 70% make over $50,000 a year. 7 Smartphone user behavior also differs from traditional PC searchers. Smartphone users are typically looking for immediate snippets of information while on the go. In comparison, PC users tend to search over a longer period and in greater depth. The demographic and behavioral difference between mobile and PC users has led to improvements in key search marketing metrics. According to research conducted by The Search Agency, the average cost per click for mobile campaigns averages 30% less than for desktop campaigns. In addition, The Search Agency found that the average mobile click through rate is five times higher than that for desktop campaigns. Mobile Paid Search: Dial Up Your Online Marketing Results 2

3 Average CPC Average CTR $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $- $0.53 Mobile $0.75 Desktop 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 2.9% Mobile 0.5% Desktop Source: TSA data on file; 13 accounts from Nov to Feb The same pattern exists across the growing tablet market. According to new research from the market research firm IDC, the tablet market grew 45.1% in the last quarter of Evidence from Google shows that tablet users spend up to 50% more than their PC-using counterparts. 9 What s more, Google has also released data concluding that the conversion rate on tablets is higher or equal to the average conversion rate on PCs, and that they generate higher average order values and a lower cost per click. 10 Other research suggests that tablet users spend longer on sites and are more responsive to text advertisements. 11 Despite this growth, marketers have long held the same questions regarding mobile marketing: When will smartphone adoption and mobile search reach a critical mass? And when it does, how will users interact with the platform? With the impressive growth in smartphone market share, mobile search queries, and conversion rate, it would seem that this is the moment mobile marketing has been building toward. Marketers have a unique opportunity to take advantage of this growing channel in its comparatively nascent stage. The history of traditional online marketing has proven that the more data you can accumulate in an account, the better your opportunities are to test, and specific to search marketing, to improve your quality score. Part II of this white paper lays out the landscape of mobile search marketing, including the advertising formats and post-click destinations that can improve mobile marketing performance. Part II: Options for Mobile Search Marketing Did you know that both Google AdWords and Microsoft s adcenter opt in all new paid search campaigns to show ads on mobile devices? Unfortunately, optimizing mobile traffic isn t as simple as just adding mobile impressions to your existing campaigns. On a mobile phone, screen space is extremely limited. The resolution of an iphone, Blackberry, or Android device screen is low in comparison with a desktop computer, and this difference fosters a distinct user experience. Although smartphone displays are fully web enabled, websites not optimized for mobile browsers can appear clumsy and difficult to navigate. Mobile users are searching for relevant information, quickly and efficiently. Thus, the onus rests with search marketers to design websites that ensure mobile customers can easily find the information or products they are searching for. At a minimum, it s essential for marketers to have a website optimized for the smaller smartphones screen, with features that leverage location and touch-screen features. Mobile Paid Search: Dial Up Your Online Marketing Results 3

4 Ad Formats Within mobile advertising, there are several ways to drive traffic to your site, app, or landing page. From traditional text advertisements to location-based marketing and click to call ads, marketers ave several options when developing paid search ad creative: Ad Sitelinks provide links to more specific pages on your site. Phone Extensions display a clickable phone number in paid text ads. Location Extensions promote your business on a local map. Click-to-download ads connect customers to the itunes store or the Android marketplace to download an app. Click-to-call-only ads are text placements that display only a clickable phone number (and thus are ideal for advertisers who lack a mobile website and have a robust call center.) Offer ads are a beta ad format from Google that enable consumers to acquire online deals directly from a mobile text ad. Post-click Destinations Whether it be a website, landing page, or app, the post-click destination for each mobile paid search ad should be based on the unique conversion goal of the campaign. From the onset, marketers should consider the goals of their mobile campaigns, and whether they vary from their existing desktop campaigns. For example, a mixed-channel retailer may focus on e-commerce sales with its desktop campaigns, but wish to generate foot traffic to brick-and-mortar locations with its mobile campaigns. While desktop campaigns typically drive traffic to a site or landing page, mobile campaigns have a broader array of post-click destinations. Choosing the correct one depends on your marketing objectives, as well as the mobile assets you have at your disposal: Mobile Site A mobile-optimized site is the first step in creating a mobile marketing strategy. Whether launching a mobile campaign or just responding to an increase in traffic from mobile devices, it s essential to optimize your website for mobile viewing. It s key when developing a mobile-friendly website to keep in mind that user behavior on mobile devices differs from the desktop experience, and that your website should be streamlined to these needs. Looking for the right information quickly means that mobile users most likely do not want to be overwhelmed with content. Instead, think about making the most relevant information the most accessible. It s also important to remember that the wide range of smartphones currently available vary in speed, appearance, screen size, and graphics capabilities. Your site may be optimized for the iphone, but it may still appear sloppy on Android or Blackberry devices. Mobile Landing Page Tenured search marketers know the value of a well tested landing page in acquiring new customers. Mobile landing pages are an essential means of driving mobile sales, leads, and foot traffic. Click-to-Call Ads Both Google and Bing have incorporated click-to-call features in their mobile ad-bidding systems. At the start of 2011, Google reported millions of calls each month being generated from the mobile advertising call-to-click feature. Measuring calls generated from ad clicks is an excellent metric for measuring the success of a mobile paid search campaign. Click-to-call ads enable marketers to embed local or national telephone numbers in their ads, allowing mobile users to conveniently call businesses directly from Mobile Paid Search: Dial Up Your Online Marketing Results 4

5 a website or search-results page. Ads can be served based on location, providing consumers with the most relevant, closest business available. Local Results Location is one of the key factors in mobile search marketing. Mobile users are looking for information while shopping, looking for a restaurant, or otherwise on the go. In fact, Google recently reported that 1 out of every 3 mobile searches was local in nature. Bing reports an even higher number, claiming that over 50% of their mobile traffic is generated by location-related searches. It s imperative for local advertisers to incorporate mobile search marketing into their larger online marketing strategy. Not doing so would be to ignore an enormous opportunity to directly target customers looking for your services just at the point when they re making purchase decisions. YouTube Video In tandem with the growth of smartphone users has come a spike in YouTube s traffic. As of January 2011, YouTube reported having over 112 million unique users, a 45% increase from January 2010, streaming over 8.5 billion videos. For brand advertisers, or marketers without a mobile-optimized site, driving search traffic to landing pages with YouTube videos, or to these videos directly, can foster increased engagement. App Downloads Apps have become an important part of the mobile smartphone landscape over the least several years. With the success of Apple s itunes app store, and now Google s Android marketplace, apps are a viable means of creating brand awareness and driving revenue. Google allows advertisers to create ads that link directly to the itunes or Android app store. Click-to-download ads provide an effective way to generate new app installations Part III: Mobile Paid Search Optimization and Best Practices Unlike PC users, who have the luxury of time, a comfortable desk, and a large monitor, mobile users generally search for information while on the go. As a result, their searches correlate more closely with their location and context, and require immediate answers. In formulating a mobile marketing strategy, advertisers should be mindful of these differences and first map over their searchers intent. What solution are they searching for in their query? Where are they? How do these factor affect their state of mind? Consider the following: Action, Context, Location, and Mood. Marketers will get better results if they are able to determine what their target market is doing right now and when they can market to this situation: Action. What do your searchers want to achieve? Context. What is specific to their situation? Location. Where are they? Mood. How are they feeling? How marketers approach their mobile paid search campaign also depends on their mobile marketing goals, budget, and current mobile assets. With a mapped-out user intent as a foundation, advertisers should further develop their mobile marketing strategies according to their broader online marketing goals, budget, and desired success metrics. Advertisers strategies will vary across business models, budgets, and online marketing experience. The objectives of an e-commerce site looking to drive awareness for new products or services will differ Mobile Paid Search: Dial Up Your Online Marketing Results 5

6 from the goals of advertisers looking to leverage mobile paid search to drive sales (e.g., a movie ticket site) or drive app downloads. While one set of advertisers may view mobile paid search as a means of creating awareness, and as one aspect of a larger, more comprehensive online marketing strategy, others may seek to employ it to generate conversions and drive sales. A marketer s approach to mobile paid search also depends on the state of his or her mobile assets. Establishing a new mobile paid search campaign requires a different approach from one used to optimize a campaign with a previously existing mobile website or mobile landing page. The metrics for success (i.e., sales, leads, calls, app downloads, clicks on local page) are also dependent on these objectives and what mobile assets are available, and typically vary by keyword. Account Structure New Google and Bing campaigns are, by default, opted into serving ads on mobile devices, which means that many marketers are already spending on mobile paid search. Google AdWords can provide details about the portion of mobile traffic and conversions for a campaign, ad group, or keyword. If 10% or more of a campaign s clicks derive from mobile devices, marketers should consider targeting mobile devices separately. Mobile-only campaigns enable marketers to create a unique budget and keyword bids for mobile-targeted keywords, and drive ROI. Compared with desktop campaigns, Google mobile-specific campaigns report an average increase of 11.5% in click-through rate. 12 Separating mobile campaigns also allows marketers to accumulate accurate historical data and a unique mobile-specific quality score, which in turn will make it easier to appropriately value mobile keywords and accommodate future growth. Keyword Selection Just as with desktop search marketing campaigns, effective mobile advertising starts with comprehensive keyword research. In order to target keywords specifically for mobile campaigns, marketers can use three primary resources: Leverage existing accounts. Identify keywords that are already high performing and use these in your mobile campaign. Mobile modifiers. Depending on their business model, advertisers should consider using including geo-modifiers in their keywords. Google mobile keyword selection tool Make sure to open the advanced settings menu and filter for mobile traffic. Mobile Paid Search: Dial Up Your Online Marketing Results 6

7 Ad Copy The attention span of mobile searchers is shorter than desktop users; so, marketers have to get to the point quickly, especially in their ad copy. It s important to create a strong call to action that s appropriate for mobile users, and that reinforces the relevance and value of a service, product, or app. Marketers should also leverage ad extensions such as call-to-click ads and location extensions, which can connect searchers directly with a call center or can promote a store location on a map. By linking their mobile AdWords campaign to a Google Places account via Location extensions, marketers ensure their ads are localized and eligible to show with a map of their physical location. Phone extensions further enable marketers to utilize Google s click-to-call feature, which automatically connects users to a company s phone number. If a marketer doesn t have a mobile website, it should consider click-to-call-only ads, where only the company s phone number is clickable. Additional best practices for creative optimization: Ads should match language on landing page. Create a call to action appropriate for mobile users. Use ad extensions. Ongoing testing and measurement. Bid Management How marketers approaches bid management for all search marketing campaigns depends on their goals, business model, and key conversion metrics. For e-commerce sites, it s essential to be able to track sales. But sales and leads aren t the only conversion metrics in mobile paid search. Marketers should also consider the fractional conversion values of a mobile conversion. Marketers who view mobile paid search as one aspect of a broader marketing strategy, and one step along their purchase funnel, should consider how an app download or online promotion could affect the ultimate sale of a product or service, either online or offline. Tracking and Analyzing Data Impressions, clicks, click-through rate, cost per click, and conversion rate can all be tracked and analyzed within Google s AdWords and Microsoft s adcenter. Google enables marketers to venture one step further in their data analysis with Google call metrics. Google call metrics can track the volume, duration and area code of calls generated by click-to-call ads. Android app downloads from click-to-download ads can also be tracked in Google Analytics. For simple e-commerce applications, using search-engine pixels and serviceside code snippets works well. For more complex mobile campaigns, however, marketers will need to consider more robust analytics platforms. Landing-Page Optimization Landing pages are critical to any performance-based search marketing program, and mobile campaigns are no different. Where marketers send their traffic depends on the goals and infrastructure of the campaign. Regardless of which conversion path a marketer employs, whether click-to-call ads, a click-tomobile site, or click-to-map ads, users should be able to complete the action in 15 seconds. If the action requires longer than 15 seconds, it s likely the user will become frustrated and exit the site. Best practice tip. Launch new mobile keywords with higher-than-typical bids to establish a strong quality score. Mobile Landing Page Optimization Best Practices Simplicity Focus on one marketing goal. Determine the most important purpose of your mobile site: Mobile Paid Search: Dial Up Your Online Marketing Results 7

8 branding, acquisition, engagement, retention, customer service, etc. Optimize for speed. Page-load speed matters on all websites; it matters even more on mobile sites. Prioritize low page weight. Ease of use Optimize navigation with touch-friendly buttons and links. Segment pages with granularity. Use breadcrumbs, filters, and jump links to improve user experience. Use large fields. Larger fields help users more easily see and fill in questionnaires. They directly affect completion rate, and mitigate error rates. Content Reflect your brand. Transfer the most visually significant elements from your desktop site to your mobile site. Focus your message. About 85% of each page view is spent at the top section of a page; so, make sure to get essential information to the top. Bad elements Avoid pop-ups. Avoid redirects. Avoid Flash and JavaScript. Keep in mind Complement click-to call ads. Click-to-call numbers should appear on a site; this is especially crucial for lead-generation pages. Collect mobile numbers. Collect numbers whenever possible. Don t forget about the opportunities to collect from nonmobile channels as well: website, social profiles, sign-up forms, etc. Give users the option to switch to the full, desktop site. Conclusion With the dramatic increase in smartphone adoption, mobile advertising has become a legitimate opportunity for many search marketers. The proliferation of smartphone devices has dramatically affected mobile search query statistics. Google alone saw a 300% increase in mobile searches from January 2010 to January 2011, and Google s current expectation is that over the next 18 months between 15% and 30% of a marketer s search traffic will come from mobile queries. 13 It s critical for marketers to craft their mobile marketing strategy now, in order to gain experience and build their mobile quality score while the costs per click are still low. When developing mobile paid search marketing strategies, it s important to be mindful of the differences between PC and mobile user experiences. Whether shopping for shoes, looking for a restaurant, or booking concert tickets while on the go, mobile users need easily accessible information fast. Marketers who first map over searchers intent and mirror their users state of mind will generate better results. The most effective way to leverage mobile search queries is to create mobile-specific search campaigns. Within mobile-specific campaigns, marketers can better control their budget, set specific keyword bids Mobile Paid Search: Dial Up Your Online Marketing Results 8

9 for mobile-targeted keywords, and drive ROI. Separate mobile campaigns also enable marketers to collect more accurate data and develop a mobile-specific quality score. Ad creative and keywords should also address the specific needs of mobile users, and marketers should keep both their content and landing pages concise, easy to navigate, and directed toward a mobile audience. Mobile Paid Search Checklist Opportunity assessment Note whether the account is currently opted into mobile search marketing. Determine what percentage of your search traffic comes from mobile devices. Account structure Create mobile-specific campaigns. Campaign settings Target by mobile devices and carriers. Separate tablet traffic from smartphone traffic. Keyword selection Start with keyword list already running in desktop campaigns. Ad copy Create a call to action that resonates with mobile users. Start with click-to-call ads if you don t have a mobile-optimized site or landing pages. Bid management Define your conversion metric and CPA goal. Bid aggressively at the beginning to establish strong mobile quality scores. Landing pages Make sure users can complete the desired action in fewer than 15 seconds. As with any search marketing campaign, marketers should consistently track and analyze campaign performance data and continually test every aspect of their campaign. With clearly defined conversion goals and full visibility into their data, marketers can make more precise, timely decisions about every detail of their mobile campaigns and improve their overall ROI from paid search. Reference 1. The Nielsen Company, Mobile Snapshot: Smartphones Now 28% of U.S. Cellphone Market, Nielsenwire, November 1, 2010, 2. The Nielsen Company, Smartphones to Overtake Feature Phones in U.S. by 2011, Nielsenwire, March 26, 2010, 3. Google, Mobile Paid Search: Dial Up Your Online Marketing Results in 2011 (presentation, American Marketing Association web seminar, March 30, 2011) Ibid. 5. Ibid. 6. Mobile Snapshot: Smartphones Now 28% of U.S. Cellphone Market. Nielsenwire. 7. U.S. Smartphone Battle Heats Up: Which is the Most Desired Operating System? Nielsenwire. December 1, Mobile Paid Search: Dial Up Your Online Marketing Results 9

10 8. IDC s Worldwide Quarterly Media Tablet and ereader Tracker Makes Its Debut, Projects Nearly 17 Million Media Tablets Shipped Worldwide in IDC. January 18, Google, Mobile Paid Search: Dial Up Your Online Marketing Results in Ibid. 11. The Increasingly Connected Consumer: Connected Devices: A Look Behind the Growing Popularity of ipads, Kindles, and Other Devices. Nielsenwire. October Mobile Best Practice: Separate Out Mobile Campaigns for Improved Performance. Google Mobile Ads Blog. February 9, Google, Mobile Paid Search: Dial Up Your Online Marketing Results in Mobile Paid Search: Dial Up Your Online Marketing Results 10

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