Around the world, mobile users are spending more money on products displayed in search ads as opposed to display ads.
Mobile ad purchasers in Europe and Asia are three times more inclined to spend money if the products show up in search ads rather than display ads, reports the Interactive Advertising Bureau.
In North America, the spending for search vs. display is $811 million to $572 million.
Jeff John Roberts of paidContent says display ads aren’t as popular on mobile devices because users have smaller screens. There is also an attitude among users that display ads are “inherently intrusive.”
By 2016, he writes, eMarketer has predicted that mobile advertising will reach $10 billion.
To close the spending gap on mobile devices, marketers can integrate video into their ads, which lead to higher engagement rates. Facebook currently doesn’t offer mobile advertising, but sponsored stories in news feeds will be comparable to search ads and solve that problem.
The perception of mobile ads isn’t yet completely positive because it’s a new market. As more and more people purchase smartphones, marketers need to determine just how far they can take their ads without people being annoyed or feel like their privacy is compromised.