As a result Google says that Australian retailers are boosting spending on mobile ads.
The big search Company claims that hundreds of Australian retailers now see regular reports on store visits that follow clicks on Google search ads.
“We know from Google’s store-measurement data that our mobile-search ads greatly influence in-store sales,” said Kristi Argyilan, a Target executive.
She said Google data show people who have clicked on mobile-search ads spend more in its stores than those who click on desktop search ads. One-third of Target’s mobile-search ads led to a user visiting one of its stores during the 2014 holiday season, she added.
A JB Hi Fi executive said that more traffic than ever before is now coming from smartphones and tablets.
The favourable reaction from advertisers could help Google tackle a big challenge: the lower prices of mobile-search ads.
Marketers have been cool to mobile ads, because they think fewer users take the trouble to complete purchases on phones. If Google can show that many of these users later buy items in stores that could lift the prices of mobile ads, which tend to be about half the price of desktop ads.
Digital-marketing agency Merkle RKG said its clients paid 23% more for mobile-search ads on Google in the first quarter, compared with a year earlier. On personal computers, prices for Merkle clients rose 14%.
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