Mobile Ad CTR
Worstream recently put out an infographic where they suggested that 64.6% of search result clicks on highly commercial keywords are clicks on AdWords ads. Shortly before Google's quarterly announcement RKG put out their digital marketing report. In it they highlight how search ad CTR differs by device.
What causes a higher CTR on cell phones & tablets? A smaller search interface, which allows ads to dominate a larger portion of the screen real estate.
Screen Real Estate
Vertical iPhone = 1/3 of an organic listing above the fold.
Horizontal iPhone = all ads above the fold.
Vertical iPad is about 2/3 ads above the fold.
Horizontal iPad has about half of a single organic listing above the fold.
Vertical Kindle is about 2/3 ads.
Horizontal Kindle is 100% ads above the fold.
And the above interfaces are not going to look any less ad heavy as Google adds paid inclusion shopping results.
Controlling the Ecosystem
Google offers sitelinks when they think a search query is navigational in nature. In spite of that, for some brands they will still show 3 AdWords ads above the organic search results, in an attempt to force the brand to re-buy their own brand equity.
If you control what is above the fold (and can get away with serving nothing but ads above the fold) you can make a lot of money.
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