Two-thirds of US search ad expenditure is now going toward mobile placements

Mobile continues to drive search advertising expenditure in the US whilst desktop search ad spending is in decline.

The growth is being attributed to consumers increasingly going mobile-first, whilst search engine usage is offering more valuable insights for marketers.

eMarketer now estimates that 71.5% of the US population are going to perform online searches at least once a month this year, amounting to 85% of Internet users. Almost three in five consumers are also using their mobile devices to perform online searches in 2017.

Therefore, spending on search ads has continued to increase at double-digit rates in the US. In the US, search ad expenditure is predicted to grow almost 25% in 2017.

In 2016, two-thirds of US search ad expenditure went toward mobile search ad placements. That means mobile’s share is reaching 70% this year and 80% by 2021.

Google continues to rank at the top for search advertising revenue. According to Merkle research, 89% of US search ads during the second quarter 2017 occurred on Google properties. The smartphone search ad clicks ratio was 97% for Google alone.

Meanwhile, keyword targeting is still a core feature of search ads. However, advertisers are increasingly turning to more advanced targeting options such as demographics, location and other audience targeting tools. Surprisingly, voice search may become the next big thing, according to a survey by BrightEdge earlier this year.

According to a report by iProspect, mobile CPC jumped 17% between the first and second quarter in 2017 with an overall increase of 52% since 2016. Mobile impressions also increased 18% the year over as mobile search engine results page pressure is becoming ever more competitive. Therefore, advertisers have been shifting a larger percentage of their budgets to mobile in order to more effectively align with the format’s increasing share of search.