September 7, 2006

A Google spokesperson has confirmed that for the past few weeks, the company has been testing ads on its mobile search interfaces in the United States, the United Kingdom and parts of Germany.

This is very similar to a pilot project Google began testing in Japan earlier in 2006. Meanwhile, mobile search rival JumpTap has launched a mobile search engine and auction-based ad platform to better monetize search traffic for some of its carrier clients.

Mobile operators use JumpTap's service in an effort to provide real-time search functions to their subscribers. According to an AdWords FAQ on the subject of pricing, Google's mobile ads product is similar to that of the company's keyword bidding platform for standard Internet search.

Marketers set their maximum CPC (cost-per-click) they are willing to pay. However, smart pricing doesn't apply and conversion tracking isn't currently available. Additionally, all mobile search ads are currently subject to human editorial review.

Among the few providers of branded mobile search, Google has the largest audience with approximately 4.5 million users on average during each off the last three months, according to M:Metrics. In comparion, Yahoo's mobile search offering trails slightly behind, at 3.8 million. MSN and AOL have far smaller mobile reach, with 1.1 million and 700,000 users, respectively.

M:Metrics doesn't compile the percentage share of search owned by so-called white label search services like JumpTap. The company's V.P. of Marketing, Eric McCabe claims search services on the carrier decks account for about 33 percent of all search traffic.

McCabe said JumpTap's share of the market is set to increase as carriers attempt to move the search interface closer on the handset interfaces. JumpTap's new search index and ad platform offer both paid and unpaid means for marketers to get their content and offers in front of wireless subscribers.

Paid ad products include CPC text listings, banner units, landing page creation and interstitials. Free services for mobile site operators include optimization and inclusion services such as XML feeds.

The paid advertising portion of the platform is similar to an AdWords or Yahoo Search bidding interface. McCabe added "We have our own bidding interface. People can go in and bid for mobile-specific keywords, and those will get incorporated as sponsored links at the top or bottom of the search results.

He also said that the early advertisers on JumpTap's platform are likely to be mobile content providers such as ringtones and wallpapers, both often sold directly through the handset interface. Other likely advertisers in the segment are regional businesses, though as with other forms of local online advertising, raising their awareness of the mobile channel and the option to advertise there still remains an obstacle.

Source: Click Z