MobiAD Archives

Google Mobile Ad Revenue To Reach US$14 Billion By 2015

google_logo.gifA new report by Canaccord Genuity has predicted that Google’s mobile ad revenue will reach US$14 billion by 2015 driven by smartphone uptake, growth of Android, and new services offered by Google.

This figure represents nearly half the US$29 billion Google generated from online ad sales last year and shows that the mobile platform is closing the gap on web based platforms.

This report is in line with the prediction that mobile will eventually draw level with online platforms before overtaking them due to changing consumer behaviour.

According to the report Google already brings in 2.5 billion from Mobile Ads with much of this coming from search and display ads that Google serves on Apple devices. But their dominance will only increase thanks to all the new products that they are releasing and as the consumer uptake for these services continues to grow.

Google currently represents some 90% of mobile search, but much of their expected growth will be based on new products that have recently been released:

  • Social media service Google+ is expected to generate huge amount of mobile inventory as social media users typically do a lot of browsing
  • Google Wallet, the new mobile payments scheme
  • Offers, the daily deals service will also be very mobile focused and a good platform for mobile advertising.

google_schmidt.jpgJust over three years ago, Google CEO Eric Schmidt was interviewed on CNBC, and he stated that eventually Google can make more money from mobile than it does on the desktop.

“We can make more money in mobile than we do in the desktop eventually… and the reason is the mobile computer is more targeted. Think about it: you carry your phone, and your phone knows all about you… we can do a very, very targeted ad. Over time we will make more money from mobile advertising… not now, but over time.”

05.07.2011    Tags: , ,
Interested in Mobile Marketing and Mobile Commerce?
Subscribe to MobiAD News
Get the newsletter!

Subscribe to MobiAD