Mobile Search Up by 83 Percent, Desktop Ads Forecasted to Decline

Statistics show that while mobile searches are increasing, desktop searches for the U.S is predicted to decline drastically.

The changes were due to the number of people who have switched from using desktop computers to mobile devices such as tablets and smartphones. According to data gathered by eMarketer, mobile search will rise by 83 percent this year while desktop searches will continue to decline year by year.

Since more people are into mobile searches, the expenditure for mobile search ad also increased by 120.8 percent in 2013 while desktop ad spending rose by a mere 2.3 percent for the same year.

For 2014, industry experts theorized that desktop search ad spending will decrease by as much as $1.4 billion this year, a 9.4 percent decline from 2013's budget. In totality, desktop ad spending in the U.S will decrease by 2.4 percent in 2014, reflecting a jump from $33.18 billion in 2013 to just $32.39 billion. On the other hand, the budget for mobile search ads will be $9.02 billion.

Google is one of the top indicators of the state of the ad expenditure budget. In 2013, 76.4 percent of the Google's revenue came from desktop ads. However, this is expected to decline to 66.3 percent this year because of the $770 million cut from desktop search ad profit.

But, whatever Google is losing in desktop ad revenues, it is gaining from their mobile ad placements. Emarketer estimates that the company's mobile search profit will rise by $1.76 billion. In 2013, mobile search ad revenues for Google increased by 19.4 percent which is 26.7 percent of the company's total revenue for that year.

Important contributors that led the success of Google's mobile search platform are their Product Listing Ads (PLAs) and Enhanced Campaigns. Both of these played an important role in penetrating the mobile market through increased click and share activities on mobile platforms.