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Tablet Ads Deliver Results, but Barriers Remain

By 2015, more than half of US internet users will use a tablet

October 18, 2012 (New York, NY) – Tablet ad campaigns are outperforming mobile norms on key brand metrics, according to a new eMarketer report, “Tablet Advertising: Volume and Engagement Levels Jump Up.” Paid search ads targeting tablets are delivering better results than desktop search.

The report answers key questions for marketers interested in exploring the opportunities tablet advertising offers including:

  • What role do tablets play in the growth of mobile ad spending?
  • How is the volume of tablet ads changing?
  • How do tablet ads compare to other digital channels?
  • How are brands leveraging rich media ad units?
  • What progress is being made to link television and tablet ads?

By the end of this year, eMarketer estimates the number of US tablet users—defined as anyone who uses a tablet at least once a month—will reach nearly 70 million, up from 34 million in 2011. At that point, roughly 30% of internet users will use a tablet at least once a month.

By 2015, over half of internet users will log onto the web via their tablet.

The rapid growth of the tablet media audience has delivered a wealth of opportunity for advertisers. Tablet ads are proving to be more engaging than typical mobile campaigns and, at times, more effective than ads on a PC.

According to Marin Software, a digital ad management platform, the share of paid clicks from tablet devices increased 33% on their platform between Q1 and Q2 of 2012. The Marin study showed those conducting a search on a tablet were 42% more likely to click on ads compared to those searching on a traditional computer.

Data from InsightExpress, a research firm that measures the impact of marketing campaigns on mobile devices, showed tablet display ads delivered better results on nearly every brand metric compared to mobile norms. These conclusions were drawn based on a comparison of results from six tablet campaigns run in 2012 against 240 mobile campaigns conducted between November 2007 and June 2012. In aggregate, consumers were keenly aware of ads served to their tablet devices and those ads were twice as likely to raise purchase intent as typical mobile ad campaigns.

An analysis of clickthrough rates for display ads served on the Jumptap mobile ad network showed tablets generated the highest response rates of all mobile devices in the first quarter of the year.

Indeed, the response rates for tablet display ads are eye-catching but so are the cost per thousands (CPMs). Limited supply and high demand are keeping display ad prices at premium levels. “In general, tablet CPMs are 33% to 55% higher than that of mobile because of the larger screen size, more limited reach and high demand,” said Paran Johar, CMO of Jumptap.

While tablets offer significant new opportunity to marketers, some remain hesitant to go all in, as they wait for the number of tablet users to go up and the cost of tablet ad development and buys to go down.

Posted on October 18, 2012.