Google Tests Desktop-to-Mobile Retargeting Ad Product

Google is testing a new advertising feature that bridges the gap between people who have visited brands’ websites via desktop with advertisements on their mobile devices, and vice-versa. This comes at a time where Desktop search in the US is poised for a significant decline this year and paid clicks on Google shift toward mobile devices, according to a new eMarketer study. Some of the highlights from that study include:

— US mobile search ad spending will grow 40.1% in 2014, contributing to an overall gain of 122.0% for all mobile ads.

— Overall desktop ad spending increased just 2.3% last year.

— Desktop search ad spending will drop $1.4 billion this year, a decrease of 9.4% from 2013.

— In 2013, 76.4% of Google’s search ad revenues came from desktop. However, that share is expected to fall to 66.3% in 2014 due to a $770 million decrease in desktop search ad.

— Google’s mobile search revenues will increase $1.76 billion, totaling approximately one-third of Google’s total search revenues.

So this cross-device targeting is a important initiative at Google because people are shifting between their mobile phones, tablets, and desktops, and the primary means of tracking web browsing, the cookie, has limited functionality on mobile.

According to our Consumer Commerce Monitor Survey (CCM), 40.3% of consumers use their smartphone daily for local shopping activities compared to 28% of consumers who use a desktop daily for local shopping activities.

Advertisers are responding to consumers’ rapidly increasing time spent with mobile phones and tablets and the usage shift to mobile. Search inside mobile platforms don’t leverage cookies as effectively so something new like this is needed. This will help better monetize mobile app ad inventory.