According to CNN Money, in the fourth quarter Google revenue rose by 39% to $11.3 billion, but these figures exclude advertising sales. Despite the number of clicks increasing by 24%, the cost per click fell by 6% when compared to last year.
Google has an impressive search deal with Apple that connects about 1 million Android devices a day to Google. Google now controls a 93.3% share in the US mobile search market. Despite the controlling stake, the entire market is apparently worth less than $2 billion, according to online advertising analysis firm eMarketer.
eMarketer’s Clark Fredricksen believes that advertisers are hesitant to pay per click for mobile search rates because mobile searchers are less likely to convert into purchasers than desktop users.
We spoke to Tami Sussman, Chief Marketing Officer at ICT company, the Integr8 Group, about the mobile advertising challenge.
How can internet companies make money from mobile advertising?
Internet companies will have to start offering free applications in order to make money from advertising revenue. Many applications are free, because they have “advertising”. Often only if you pay for an application, then you will receive it without “advertising”.
Why do you think mobile phones could be crippling some website’s advertising revenues?
We have to bear in mind the size of a mobile phone screen versus the size of a computer or laptop screen. The larger screens allow for much more advertising, while the advertising on smaller screens (such as mobile phones) advertising is limited. Too much advertising on the smaller screens is irritating and a nuisance for the user.
Would you say with the rise in the use of mobile phones to access the web that this could be damaging to websites regarding advertising revenue?
Far more people have access to mobile phones than they do to laptops or computers. So I think websites and advertising are going to have to transform to accommodate and take advantage of this trend.
What do you think websites could put in place to protect their advertising revenue?
Websites should be easily viewed and accessible via mobile phones. And the websites should be amended to make the user experience good while accessing the respective website via a mobile phone.
BY: Thanduxolo Buti