Last week it was announced that Google has implemented a new feature to its eminent Adwords platform – the ability to distribute ads specifically for the mobile internet user who has an HTML compatible device, namely the Apple iPhone. However any mobile device with HTML compatibility and the ability to display full web browsers can also take advantage of the new technology. It has been reported that iPhones have been one of biggest sources of mobile web traffic for Google, so it seems logical that Google are looking to monetise this opportunity.

Previously mobile Adwords advertisers would have had to create mobile campaigns and adhere to mobile ad sizes and restrictions. Now orthodox desktop Adwords ads can be served on compatible mobile devices. They can also be reported on separately and include mobile specific call to actions such as calling the advertiser for example.

This functionality is a natural extension for Google as there are now reportedly over 400 million mobile web users and this is growing at 8 times the rate of new PC based internet users. Whilst the number of mobile internet users has been growing at a fast rate, advertising revenues have not increased at the same rate some may have predicted or desired. This has principally been due to lack of developments in mobile technology. Early mobile browsing powered by WAP was quite slow and not conducive to a prolonged browsing experience and thus difficult for advertisers to capitalise on. However with the advent of 3G mobile communications and the ability of modern devices to handle full HTML browsers and run at much faster browsing speeds, a real opportunity has arisen for mobile advertising to succeed as users can view more pages at a much quicker speed.

The question is how to best capitalise on this new channel? Fluid Creativity is advising their paid search clients to design specific ads for the mobile market where possible. It should be recognised that although mobile internet usage is increasing, it is probable that certain criteria that will impact on its success, such as the amount of ecommerce transactions made by mobile users will still be a great deal lower as a percentage of overall use when compared to desktop users. A consequence of this is that advertisers may find that conversion rates are much lower among mobile web users.

However as mobile web use is in general conducted when users are on the move, for example, commuting from one place to another there can be other methods utilised to entice the user to convert. A conventional Adwords ad might entice a user to “order online”. However a mobile ad could use a different call to action such as a Freephone “0800” number and a message to “call now”. The number can be dialled directly from the ad with no need to key in the number manually. As the user will have the phone in their hand it would seem an easier method than, for example, making a phone call when in the office (where booking online is easier).