|Online Advertising Changes Will Affect Advertisers and Publishers|
According to the latest report on search advertising from eMarketer, desktop advertising will decline over the coming years by as much as 10% by 2018.
The shift to mobile, of course, does show significant growth, as high as 83% in 2014.
Here's the article, for reference.
Desktop Search to Decline $1.4 Billion as Google Users Shift to Mobile [emarketer.com]
That's great news, at first glance, until considering that mobile advertising is lower cost than desktop. This results in lower revenues for Google.
For an advertiser, it should help lower their costs.
For someone with AdSense it may be a bigger problem. If desktop advertising is to decline, and mobile is at a lower cost, this will impact on a Google AdSense publisher's opportunity to earn.
What is your view on these ideas, and how should we adapt to retain our earnings as publishers. Are there just going to be winners in the advertising arena.
Oh, and what about Google? How do you think it's going to impact it's earnings? Will Google come out with other revenue earning programmes to halt the decline, and what are they? Any bets on the products or services to get a hike in costs? Could we all be paying more for our Google services?
I have a view, but i'd like to hear yours.
Google must have ideas on how to maximize their revenue fromobile. If not, why are they the biggest driving force behind mobile.
One division of Google killing the cash cow?
|mobile is at a lower cost |
As an advertiser, we need to bid lower for mobile ads because our mobile conversion rates are a lot lower.
Different niches likely have different numbers but for us it works out about right if we discount mobile bids by 75%.
The general transition from desktop to mobile has started impacting AdSense, and that is going to hurt Google, too. It'd also going to hurt other ad networks unless there's a solution i'm unaware of.
I bet Google is going to upgrade their AdSense system to a mobile-friendly one.
>AdSense system to a mobile-friendly one.
I don't think that's a big problem. I'm convinced it's the opportunity for AdSense publishers to earn from mobile.
@engine - Yes, that would benefit publishers in the long run, considering that monetizing mobile-time makes for all the non-desktop time visitors use.
|Different niches likely have different numbers but for us it works out about right if we discount mobile bids by 75%. |
Wow, that seems like a pretty big discount. Is that mostly driven by conversion rates? Or do mobiles spend less when they do convert? Or both?
Some stats from January 1 to March 31 of this year:
Number of transactions: 11,532
Mobile = X
Tablet = 2X
Desktop = 4X
Average order value:
Mobile = $71.08
Tablet = $87.11
Desktop = $90.61
Mobile users account for 24% of the traffic but 7% of the revenue.
So ... we bid down for mobile ad impressions. We have no choice.
Thanks buckworks, that an eye opener for me.
hi Buckworks, what type of website do you have 100% ecommerce....or something else?
Thanks, sorry for being nosey....but you are very successful:)
To clarify, I always think in terms of "we" and "us" but the site those stats are from belongs to a client.
The site primarily comprises product and category pages. Only a small percentage of the pages could be described as informational only.
The site is ecommerce to sell things "here and now" and also collects leads in hopes of making sales further down the road.
I don't want to say too much, but I hope that's enough to make sense.
Thanks Buckworks appreciate it.:)