Despite having lower cost per click (CPC) rates than PCs, tablets offered a 68% higher ROI than PCs for US search advertisers in Q2, based on 20% higher conversion rates, according to a July 2012 report from Adobe. Overall, search spend increased on a year-over-year basis for PCs, tablets, and smartphones, with smartphones offering a slightly higher ROI than PCs. In Q2, for financial services advertisers, conversion rates for tablets were 22% higher than for PCs, while for retail campaigns, they were 19% higher. Smartphone conversion rates were 38% and 43% lower than for PCs, respectively.
The higher paid search conversion rates and ROI for tablets than smartphones is not surprising, given a recent study from the IAB and ABI Research that found tablet users to be much more responsive to ads than smartphone owners. A new study released in July by the IAB UK also finds tablet owners to be open to advertising: close to two-thirds of the survey respondents said they would prefer tablet applications to have lower upfront costs with more ads, rather than higher upfront costs with fewer ads.
It appears that these tablet owners are more responsive to interactive ads: those exposed to such ads (including video or gaming) found them to be more engaging, memorable, and innovative than static ads.
Advertisers targeting tablet owners will find a group that is willing to make significant purchases from their devices. According to a July 2012 study from Adyen that examined 8 months of payments, iPad users spent on average 20% more per purchase than other mobile device users. Recent data from Strategy Analytics estimates that the iPad now holds 68% share of the global tablet market. Per the Adyen findings, the iPad now generates 3.6% of all mobile payments, compared to 3% on iPhones and 1.5% on Android devices. Analyzing the number of payments that originate from mobile devices as compared to the total number of payment transactions it processes, Adyen discovered that the iPad now accounts for 8.4% of worldwide mobile transactions, up from 3.6% just 8 months ago.
An April 2012 study from RichRelevance found similarly impressive statistics for the iPad, revealing that the Apple device accounts for nearly two-thirds of all US mobile shopping sessions, and an impressive 89% of all mobile shopping revenue. That study also found the average order value (AOV) for iPads ($158) to be more than 50% higher than for other iOS devices ($104) and other mobile devices ($105), and also to outpace AOV on desktops and laptops ($153).
What does this mean? It is well worth creating marketing campaigns geared for tablets, they pay for themselves as the number above show, and Ad space for these on portal sites could charge more.