Efficient Frontier: Google Controls 97 Percent of Mobile Paid Search, 3.2 Percent Goes to Bing/Yahoo!

Using Efficient Frontier data, banking and investment firm Macquarie Group reported that almost 5% of paid search spending in the US is now in mobile.Google dominates mobile search share in the US with roughly 98%, the report said that 97% of mobile search spend for Efficient Frontier clients now goes to Google, while 3.2% spend […]

Using Efficient Frontier data, banking and investment firm Macquarie Group reported that almost 5% of paid search spending in the US is now in mobile.

Google dominates mobile search share in the US with roughly 98%, the report said that 97% of mobile search spend for Efficient Frontier clients now goes to Google, while 3.2% spend goes to Bing/Yahoo.

At the recent IAB event in Florida Google CEO Eric Schmidt said that mobile is growing "faster than expected" and surpassing all the company's internal projections. On average mobile search queries represent roughly 15% of all search volume across categories, according to Google.

Efficient Frontier data show higher CPCs and lower CTRs for mobile search campaigns. This pattern is confirmed by iCrossing data as well.

The report states that mobile searches have a CTR that is "30% lower than desktop" CTR. By the same token mobile search CPC is 13% higher than on the PC, according to Efficient Frontier's data. The report doesn't mention click to call or its impact on CPC prices.

The report also has this interesting analysis about the impact of the iPhone on Google's fortunes in mobile -- 50% of iPhone Google searches come from the toolbar:

We've seen data that shows that while Google absolutely dominates searches emanating from the iPhone (95%+), ~50% of iPhone Google searches come from the toolbar, 42% from Google's homepage and less than 10% from Google's app. This is an absolutely critical point, as it indicates that Apple has significant influence over GOOG's mobile search share. If Apple were to make Bing the default search provider through its toolbar, Google's share could be significantly impacted.

[Via]