Smartphones Are Disrupting Search, the Web's Cornerstone Business

Microsoft and Intel had their Windows monopoly for a long time. When things began to change, it turned out that the transition from desk top to laptop was not all that significant. Yes, people could now log on from outside the home or office, giving them a kind of mobility, but the way the device was being used, the size of the screen and the underlying design did not require major reengineering.

Google and Apple supplanted their two predecessors when they married technology, design and knowledge with freedom.

Now, the metamorphosis from computer to smartphone is proving to be rather more disruptive than the earlier stages of metamorphosis.

As we have learned, usually the hard way, mobile usage - and search in particular - is not simply a smaller version of the computer screen. Organization, presentation and functionality all require new approaches in order to meet consumers desires so that they spark the industry's need for growth. The implications could be transformational for Google, for instance, as the following article explains. Mobile ad prices, already less robust than those for computers, may drop further. Aggregation has been both a convenience and a force multiplier. If fragmentation occurs as customers search for ever more specialized offerings, the economics of the business could change.

Times of transition are never useful for projecting trends because the paths to prosperity are not yet apparent. But just as five years ago it was unimaginable to think that Microsoft could become irrelevant, so today we must contemplate how the way in which we do things - and the companies that enable us - may be unable to maintain their functional hold on our behavior in the future. JL

Business Insider reports:

Search — the very cornerstone of the Web — has begun to show signs of decline on desktops and laptops. Meanwhile, search is surging on smartphones and tablets. 

Mobile searches are quickly becoming the main way in which consumers find everything they need — whether it's information, services, or physical and digital goods. 
That means there's a great opportunity, but also that search has more work to do. There are kinks to figure out in areas ranging from app discovery to tracking the effectiveness of local search ads.
In a new report from BI Intelligence, we analyze the current state of mobile search, explain how mobile consumers are searching more on all sorts of different apps, look at how different players in the mobile ecosystem can better take advantage of new mobile-driven search behaviors, detail why search quality is an important issue in many apps and why marketers need to gain visibility across multiple search-driven platforms, analyze how mobile search will create opportunities for developers, and examine how it will help determine which platforms succeed or fail in coming years

Here's a brief overview of the current state of mobile search:  

• Google currently dominates: Google enjoys a 95% share of worldwide mobile search queries, but Google's year-over-year CPC growth has been negative for five quarters beginning in late 2011, as cheap mobile clicks create drag on ad prices. In order to combat the low CPCs, and the monetization gap, Google recently overhauled its immensely successful search-focused ad product, AdWords. The update is complex, but Google is essentially forcing advertisers to design campaigns around context rather than specific device types — and there is no guarantee this new approach will work. 
• Search fragmentation could change everything: Search's future depends on how consumers behave on mobile. Will browsers and search engines continue to funnel search behavior? Or will apps tend to mediate search experiences? Consumers are searching more on apps vertically focused on specific categories like shopping and restaurants. That includes location-aware searches, which are increasing outside of Google's ecosystem.
• Mobile search advertising has a bright future: Despite bumps in the road — such as the problems with measuring mobile conversions, and confusion over device-targeting — mobile search has a great future as a marketing tool. The key is closing the consumer loop from online search to offline purchases so marketers understand the value proposition.
• Mobile-native search approaches will proliferate: As startups grasp for a search formula geared to mobile consumers, we can expect an increase in mobile-native search innovation. One area ripe for innovation is app search. It's difficult to find apps beyond the blockbuster Top 25 list on Google Play and Apple's App Store, both cluttered with nearly a million titles.