It is expected that 68 million people in the EU-5 will own a smartphone or tablet device in 2012.  It’s no surprise then, that mobile ad spend (including mobile phones, tablets and other mobile devices) is estimated to reach $1.05 billion in 2012 and will continue to rise at an annual growth rate of 52% between 2012 and 2015.

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Currently, the UK makes up 30% of the market share in the EU-5 and is expected to reach 33% by 2015. Germany however, is expected to rise by 85% in 2012 and by 2015 the nation is expected to own 25% of the Market Ad Spend up from 15% in 2012.

Mobile Ad Spend Growth Germany

The UK & Germany have the most developed online advertising markets, but why will we see a much larger increase in Germany? and what does this mean for your PPC campaigns?

According to eMarketer, the expected increase in German mobile ad spend is due to several factors. Firstly, the economic health of the country compared to others in the EU-5 is in a better condition, enabling growth of users owning smartphones and tablets. Secondly, the mobile ad market is underdeveloped relative to Germany’s size. As with other markets, improvements in mobile data speeds will also play a factor in the growth of mobile ad spend.   In 2013, Germany’s mobile internet population is expected to surpass that of the UK for the first time. Overall this means that if you run any advertising campaigns in Germany, mobile/tablets show most potential for growth.

This can be broken down even further. Our research shows that in some cases impressions from Tablets are very similar to Mobile despite less tablets being owned. CTRs tend to be much higher as do conversion rates – in this instance conversion rates were 3,700% higher. Whilst this is one case in isolation it still shows the importance of Tablets over Mobile. Higher CTRs and quality scores have meant that CPCs are lower meaning that Tablet is even more efficient.

So with this in mind, how should you approach your PPC campaigns?

1. Split out campaigns by device (desktop, mobile & tablet) so that you can have greater control over budgets and optimisations.
2. Ensuring that the site is mobile & tablet friendly – this means no flash to avoid disapproved ads and poor user experience.
3. Split out campaigns by operating system (iPhone vs Android). Why? Not only does this provide more control but in cases where flash is present on your site it enables you to have greater control over disapproved ads and highlights areas of concern.
4. Keywords – according to a study done by Google and Ipsos OTX MediaCT , mobile searchers are further down the funnel than desktop users, meaning you should be more selective when choosing what keywords to run on.
• Think about using more specific and relevant keywords
5. Ad Copy – again, as users are further down the funnel you have to think differently about the messaging you want to use.
• Try and use more compelling calls to action, and even think about using device specific messaging. i.e. “Shop Now On Your iPhone”
• Think about site links, the number differs on mobile and tablet.

To summarise, growth in the German mobile ad market creates potential to capture additional traffic and potential customers. However, ensure you split out your campaigns by device as well as by operating system as this will enable you to optimise your campaigns better. Use more specific keywords as well as tailored messaging to reflect users being further down the purchasing funnel. Switching your focus from mobile to tablets should help you grow revenues and following the above will put you in good stead to succeed.

Nadia