The growth trajectory on tablets is up and to the right. But the question still looms: How will the advertising work? While much is made of tablets’ potential for display advertising, less attention is paid to search, which appears to work quite well for advertisers.
Recent studies show that marketers enjoy higher click-through rates and lower costs for ads targeted to the devices. Data from ad management company Marin Software suggests tablet users were 37 percent more likely to click on search ads than desktop users during the third quarter of the year, while the cost of those ads for its clients was 29 percent lower.
That behavior is the result of a combination of factors, the firm’s vp or marketing Matt Lawson suggested. For one, tablet owners are more likely to be using the device as they consume other media. They might see a TV ad and search for a brand, for example. In addition, the form factor of the device lends itself well to certain search-friendly activities, such as commerce.
“In the short run, there’s an opportunity to get in early and buy some cheaper traffic. Tablet-user behavior is out in front of advertisers,” Lawson said, though he predicted click-though rates and ad prices will begin to normalize as the devices continue to proliferate.
Agencies, meanwhile, claim clients with tablet-specific strategies are already reaping rewards, particularly thanks to the demographic the devices currently draw. James Beveridge, a senior analyst at Performics, said the agency is seeing “favorable” click-though rates from the device and sees particular opportunity for marketers in the retail and automotive spaces. “For certain clients tablets offer a huge opportunity. “They sit in realm of early adopter devices and still tilt towards a more affluent, male, younger group … which shows a high inclination to use tablets for shopping,” he said.
Dentsu-owned 360i confirmed that its clients were also seeing high CTRs and conversions from tablets, but it suggested that trend may diminish as the novelty of the devices wears off and its use becomes normalized. David Berkowitz, the agency’s vp of emerging media, also pointed to the fact that Google displays fewer ads per search-results page for tablets than it does for desktops. “Less noise results in higher CTRs,” he suggested.
Of course, given the relatively short existence of tablets, data relating to their use remains limited. According to Marin, just 2 percent of their clients’ overall search budgets were dedicated to the devices during the third quarter. Lawson said he expects advertisers to divert more budget to the medium over the next three months, though, accelerated by the holiday season.
Though Beveridge admitted that agencies are still catching up to consumer behavior with regards to non-desktop devices, he suggested that vendors themselves are still trying to understand their nuances. “We’re talking to Google, and they’re still trying to understand if tablets look and act like mobile devices or computers. From what we’re seeing they show a bit of both,” he said.
Publishers say the competition is steeper than expected for event sponsorship dollars this year
Selling events was harder than expected for some publishers in Q2, but having a niche helped win some of the coveted sponsorship dollars.
Why some publishers are giving their AI chatbots a personality
BuzzFeed and Ingenio are hoping giving their chatbots a unique voice and tone will differentiate their AI products but others are prioritizing utility over entertainment.
Media Briefing: Publisher execs fear lack of visibility for Q3, but feel steady year over year
Publisher execs share how Q2 shook out for their businesses as they brace for an equally murky second half.
SponsoredWhat the measurement and currency discussion really means to TV advertisers
Ali Mack, head of TV and agency, Experian Major streaming video providers have recently made headlines by adopting new currencies for ad measurement, threatening Nielsen’s long-standing TV ratings monopoly. NBCUniversal, for example, has certified iSpot and VideoAmp as currencies for advanced audiences and formed the Joint Industry Committee with Paramount, TelevisaUnivision and Warner Bros. Discovery. […]
Digiday+ Research: Nearly two-thirds of publishers think they will lose when the third-party cookie dies
Publishers have been busy prepping for the end of the third-party cookie, but that doesn't mean they think they'll come out on top in the post-cookie era. In fact, publishers count themselves among those who stand to lose from the end of the cookie.
As AI spreads across the marketing landscape, data’s role will be key to success or danger
There’s a growing awareness of the risks inherent in AI's ultra-powerful potential, but whether enough steps are being taken to mitigate them remains a huge question mark.