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June 10th, 2014, 11:57 AM #1Is Google Going to Get a Run for Its Money?
Laurie Sullivan with mediapost.com reported this week that according to eMarketer, by 2018, brands will be spending 85.9% ($28.41 billion) of the U.S. digital search advertising money on mobile search campaigns.
Part of the shift from browser-based search to mobile search is due to consumers, including the 65+ age group, adapting to mobile connectivity.
Based on eMarketer's predictions, this could mean big competition for Google, which has in the past dominated the mobile search market, but is showing a downward slide from owning 82.8% of the market in 2012, to an estimated 65.7% for 2014.
Mobile apps from companies including Bing and Yahoo are becoming more widely used along with Yelp, Amazon and Kayak and are in a growth pattern unlike Google. This growth is predicted to continue over the next four years.
Smartphone and Tablet Categorization
It was also noted in the article that with Smartphone and tablet usage expected to continue to grow, industry-defined categorization will become increasingly important.
Currently, search ads on tablets are set up for bids on Google and Bing under the laptop and PC category.
In the article, Sullivan explains how eMarketer defines mobile search advertising. "...as paid ads served by search engines, search applications and carrier portals to all mobile devices including Smartphones and tablets." said Sullivan.
Isellstuff also remarked on the confusion of lumping together Smartphone and tablet stats in his post The Current State of Mobile Conversion Tracking?
Isellstuff made a good point about eBay possibly working with (inflated or) inaccurate information due to not differentiating between mobile and tablet stats. Isellstuff wrote, "I've always been confused when companies lump tablet stats into mobile. eBay does this a lot when they talk about their big push into mobile and the wonderful results they are seeing. It makes me wonder if eBay is making corporate decisions with inaccurate information."
With substantial growth on the horizon, it seems recognizing mobile, tablet and pc/laptop as separate entities will be the only feasible way to truly rate performance and plan future endeavors. Maybe Google prefers to keep the "real" numbers somewhat masked by continuing to lump it all as one category? Who knows. But no doubt, being that they are the industry pacesetters, once they make the separation, others will likely follow.
Will Google Really Leave Money on the Table?
As far as Google trending down over the past two years in mobile-generated ad revenue, one can't help but wonder what is going on and how long Google will let it go on. In my opinion? Not for much longer. While niche apps may put a dent into Google's performance over the next 18 months, I doubt it will continue much past that without some major internal shakeup.
Grant it, these days the company does seem to be more focused on driverless cars, street art, and Google Glass, and not so much on developing the killer of all killer apps, but the idea that Google will sit on its hands while Bing and Yahoo, Yelp, Amazon and others continue to nip away its ad revenue is completely opposite to all that Google stands for, which (as we all know) is complete domination of anything having to do with making money.
Last edited by leeann; June 10th, 2014 at 06:56 PM.leeann
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June 10th, 2014, 12:31 PM #2Salty kisses, Sandy toes, and a Pirate's heart...