February 7, 2013, 5:07 PM

Google bids for more mobile ad revenue

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However, Adobe says, despite some similarities, tablets and computers are different animals—particularly when it comes to ad performance. Paid search conversion rates for tablets are 20% higher than for desktops, while paid search conversion rates for smartphones are 42% lower than for desktops, according to Adobe research. “If you factor in that cost per click on tablets are 30% lower than on desktops, paid search return on investment on tablets is 70% better than desktops,” Adobe says. “By lumping the higher-performing tablet traffic in with desktop traffic, Google is increasing its revenue per search and cost per click by combining desktop and tablet traffic. However this also means advertisers may see their return on investment fall as cost per clicks increase.”

Google confirmed that the new format now does combine tablets with computers.

Still, others think the updates will help advertisers navigate the complex waters of managing mobile and PC campaigns and tailoring ads for each.

“Mobile search has been growing incredibly quickly—it's actually expected to outpace desktop search by next year,” says Larry Kim, founder and chief technology officer of search engine marketing services firm Word Stream. “But setting up mobile campaigns has been much too complicated. The new campaign structure will greatly simplify targeting and bidding for different mobile devices and locations.”

The Enhanced Campaign feature will be offered as an option for advertisers over the next few weeks and will become standard for all AdWords accounts in the next six months, Google says. 

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