Tablet Users Are the New Target for Mobile Advertisers2 Oct 2012
The Q3 2012 Online Advertising Report issued by IgnitionOne, reveals some valuable findings for those who are in the online advertising business. The particular report claims that compared to the PC user, tablet user seems to be a far more valuable asset in the point of view of an advertiser. This interesting fact is supported by the statistics, which confirm that when compared with a PC user, a tablet user spends 30 per cent more time on a website. The other statistical derivation is based on the "engagement score" which is a technique owned by IgnitionOne, and is designed to evaluate the internet users' potential, depending on his value and his tendency to make a purchase. When this engagement score was measured the tablet user stood 20 per cent ahead of the PC user. Furthermore, more investments would be made targeting this specific opportunity in the coming quarters. Ironically, even though the report was so promising in consumer aspect, the advertisers had curtailed their expenditure on mobile and tablet advertising during the third quarter.
The growth rate of the expenditure made on mobile search advertising is diminishing even though the amount spent is still increasing. Third quarter expenditure recorded a 167.5 per cent boost against the third quarter of the last year. The figure 167.5 is obviously a significant development. However, when the last year's growth was twice the value, it does not seem that significant either. This decline might be caused by the dullness that prevailed in the whole sector. So that, there will be sound improvements in all the segments, including mobile.
Out of the total search budget during the third quarter 16.3 per cent was on mobile. A 1.7 per cent increase was recorded in the budget on mobile. Situation was different for the tablet devices. It came down from 60 per cent to 52.2 per cent. A scrutiny involving these figures alone provide adequate facts that more allocations must be made in order to cater the tablet users who have proven to possess a higher "engagement score."
The report pays attention to the smartphone user as well. There are obvious issues that arise due to the technical limitations of devices and other characteristics of smartphone users. For instance, 60 per cent of smartphone users obstruct tracking. This number in tablet users is only a mere 7 per cent, and in PC users, it is 18 per cent. The technical drawbacks like smaller screens and slow internet connections make things more challenging for the advertising community. After all, the smartphone user has an engagement level, 4 per cent below the PC user. Amidst all these negative aspects it is important to pursue the targets in smartphone user category, mainly due to the huge size of the audience.
According to the report, taken as a whole, the total expenditure has reported a 17.8 per cent growth compared to the third quarter last year. Once compared with the previous quarter the number is almost the same due to the weak economy and poor performance during the back-to-school shopping season. CPC growth of 7.7 per cent reported for the first time from Google, and the 26.1 per cent growth in CPCs of Yahoo/Bing were two other noteworthy points. The potential in the tablet user segment of the market is emphasized by the numbers on the report. With wise investments this can create lucrative opportunities that will lead to surprising returns.
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