Google needs next generation smartphones like the Google Motorola "Moto-X" to help improve paid smartphone conversions and increase CPC not to mention Google ad revenue. Google has always made less money on smartphone ads than ads on PCs / laptops because smartphone conversion rates are much lower. This is a problem because more and more users are searching on smartphones and mobile devices instead of PCs and laptops. In order to increase smartphone ad revenue and meet future Wall Street expectations, Google must increase cost per click (CPC) for smartphone ads. To increase CPC for paid search ads on smartphones, Google must improve the quality of smartphone search results and improve paid conversion rates.
Delivering relevant paid ads to users at the right time on smartphones is difficult. The problem is, smartphone queries currently lack context. In order to accurately discern user intent for smartphone queries and return useful search results, search engines need contextual clues. According to Google, "context is one important key that drives search behavior. User context drives what people search for, and the actions they take." For example, is the user currently at home, walking down the street, driving in a car, out of town, on vacation, at work, in the country or in a major city? In the future, answers to questions like these will help Google return better results and better target ads.
The Google / Motorola "Moto-X" smartphone is the first smartphone to provide the contextual clues necessary for smartphone search. Moto-X includes a vast array of sensors that actually detect its surroundings. These sensors are able to capture all kinds of contextual data. As a result, Moto-X knows when it is in your pocket. It knows when you are driving and operates differently based on the context of your surroundings. According to Motorola CEO Dennis Woodside, "Moto-X is "more contextually aware of what's going on around it and allows you to interact with it in very different ways than you can today with other devices."
Google is not spending $500,000,000.00 to market the Motorola Moto-X because they plan to quit search and sell smartphones. Google needs additional data to improve emerging core products like smartphone search in order to increase smartphone conversions and revenue.
"We live in a world of abundant computing, with multiple operating systems and increasing number of the devices. And it's a very different environment from when Google started. There was essentially one OS, and one device category, the PC. These kind of changes don't happen that often. Once a decade, maybe even less. The shift from laptop to mobiles, from on screen to multiple screens, create a tremendous opportunity for Google. With more devices, more information and more activity online than ever, the potential to improve people's lives is immense. Getting you the right information, just when you need it, creating the tools to make everyone more effective at home and at work, and helping you share and remember the moments that matter in life."
- Larry Page, Google CEO and Co-Founder
Organic search marketers need to be aware of upcoming changes related to smartphone search. Google is expected to start taking actions against problematic smartphone related search issues in the near future. Google does not recommend or "want" websites to offer a different "mobile" version. Instead Google recommends offering one site which is accessible on multiple devices. Finally, keep context in mind when creating content and ensure Schema.org markup is properly integrated into webpages and emails.
For those like me who are interested in the latest smartphone statistics, here is my list. If you have additional interesting stats for 2013 please feel free to share.
Smartphone Usage Statistics:
75% of Americans bring their smartphone into the bathroom.
33% of smartphone owners would rather give up TV than their smartphone.
61% of users only look at first page search results on their smartphone.
85% of smartphone users expect webpages to load as fast if not faster than on their desktop.
90% of smartphone owners use their smartphone while at home.
87% of smartphone owners use their smartphone while on the go.
77% of smartphone owners use their smartphone while shopping.
72% of smartphone owners use their smartphone while at work.
68% of affluent Americans use a smartphone.
Smartphone Shopping Statistics 2013:
79% of smartphone owners are smartphone shoppers.
90% of smartphone shoppers use their smartphone to pre-shop
43% of smartphone shoppers use their smartphone to browse
77% of smartphone owners have researched a product or service online using their smartphone.
32% of smartphone shoppers use their smartphone to find specific product merchants.
31% of smartphone shoppers use their smartphone to get product information.
44% of smartphone shoppers use their smartphone to compare prices.
61% of men have made a mobile purchase
31% of smartphone shoppers use their smartphone to check product availability.
19% of smartphone shoppers use their smartphone to read product reviews.
44% of smartphone shoppers use their smartphone to get promotional offers.
35% of smartphone users have purchased a product of service on their smartphone
80% of smartphone owners want more information in stores.
89% of smartphone users notice mobile ads
61% of smartphone owners search with their smartphone on a daily basis.
33% of consumers have searched for online coupons via their smartphone.
Smartphone Local In-Store Shopping Statistics for 2013:
58% of smartphone shoppers use their smartphone to get directions to the store.
57% of smartphone shoppers use their smartphone to get store hours.
84% of smartphone shoppers use their device for research while shopping in a store.
82% of smartphone users use search to research products in-store.
74% of smartphone owners use their device to make offline purchases.
42% of smartphone shoppers use their device for research for more than 15 minutes while shopping in a store.
39% of shoppers that walk out of a store without making a purchase are influenced by smartphone usage.
48% of men use smartphones to research products in-store.
38% of women use smartphones to research products in-store.
26% of consumers have made in-store purchases using a mobile coupon.