- April 9, 2012
Looking for an easy, low-cost way to increase Pay Per Click conversions and lower your average Cost Per Conversion (or Cost Per Acquisition, CPA) at the same time? I know it sounds like a sleazy sales line, but mobile ad targeting is a simple way to take your search campaigns to the next level.
We have been targeting mobile and tablet users separately for our retail and e-commerce clients for quite a while. The results are pretty clear: managing mobile campaigns can increase sales, improve ROI, and make you look like a rock star.
Here are the results we’ve observed over the first quarter of 2012, separating brand-name “branded” keywords from non-branded keywords. This is an important distinction because search and conversion data differ based on whether or not a search engine user is looking for a product or company by name.
Not surprisingly, the vast majority of clicks come from desktop computers. Mobile devices and tablets account for about 15% of total clicks, and growing in proportion every month. 15% of any PPC account is a sizeable chunk worth paying attention to.
Cost Per Click (CPC)
Due to less competition from other advertisers on mobile devices, average Costs Per Click can be up to 30% lower than desktops. Tablets are typically cheaper than desktops, but not as dramatically. Bottom line, more clicks for less money!
Conversion rates for non-branded keywords is about 0.4% lower on mobile devices and 0.6% lower on tablet devices. The client sites we measured do not have a mobile-optimized site, so a small drop in conversion rates is not surprising. Visitors from branded keywords actually convert better on a mobile device, primarily because of the increased intent to visit a store location and/or complete a purchase on the go.
Cost Per Conversion
Here’s where the rubber hits the road. Cost Per Conversion answers the question, “How much does it cost to acquire a new customer?” Thanks to significantly lower CPC’s and strong conversion rates, mobile devices have a much more attractive Cost Per Conversion than desktops and tablets in these samples.
The Bottom Line
Regardless of whether or not 2012 actually IS the year of mobile, mobile AdWords targeting is here and is only going to become more competitive as more advertisers begin to test it.
Don’t ignore your desktop users, but if you’re not spending at least 15% of your time optimizing PPC campaigns for the 15% of users on smartphones and tablets, you are likely missing a big opportunity to improve conversion rates and ROI.