Google Inc (NASDAQ:GOOG), like many of its contemporaries, is doing its best to capitalize on the mobile revolution. The company came from desktop, but it has been one of the most proactive in monetizing mobile users. Cost per click, or CPC—a key metric for Google—was less than two thirds on mobile compared to desktop last quarter. Google has a plan to change that trend.
While some companies are concentrating on new ad formats that will sit well on mobile, Google Inc (NASDAQ:GOOG) is trying to find a way to make the platforms complement each other. Estimated Total Conversions is a new metric the company is bringing in for advertisers to help achieve this goal. The firm spoke about the technology recently at SMX East.
Google Total Estimated Conversions
Users see a large amount of Google Inc (NASDAQ:GOOG) advertisements on mobile, but they don’t always lead to direct sales. Many users still prefer the large screen on a PC to make purchases. Total Estimated Conversions is designed to show the effect a mobile advertisement has on a consumers later purchase.
The feature will work with Google Inc (NASDAQ:GOOG) AdWords and SMX East marked its official launch. The service only provides an estimation of the figure, which is clear from the name, but a new report form Goldman Sachs sees the value in the offering.
According to the analysts, who spoke to Google Total Estimated Conversion beta advertisers at SMX East, the technology shows the “important mid-funnel role” that mobile can play in a purchase decision. If Google Inc (NASDAQ:GOOG) can demonstrate the importance of mobile ads in later decisions, it will lead to higher Cost Per Click on mobile ads.
Google goes mobile
Despite Google’s efforts in establishing a mobile ecosystem, mobile business is still not the company’s home ground. The firm’s efforts in developing the products it offers advertisers for mobile users should change that, however. There are other businesses getting in on the action, however.
Facebook Inc (NASDAQ:FB) makes a fraction of the money Google Inc (NASDAQ:GOOG) makes on mobile and desktop, but the firm’s mobile development has been fast and impressive. Google will have to step up efforts to impress advertisers if it wants to avoid losing business to the social networking company.