Google Says Its Mobile Ad Sales are Currently Seeing a $2.5B Run Rate for 2011

During the company’s Q3 earnings call recently, Google said it’s on track to bank over $2.5B from mobile advertising in 2011, which is more than double than the …

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During the company’s Q3 earnings call recently, Google said it’s on track to bank over $2.5B from mobile advertising in 2011, which is more than double than the $1B the company recorded in 2010.

While $2.5B seems relatively low compared to the $30B+ in total revenue the search giant is on track to post this year, but the growth rate is what’s impressive.  Most of Google’s revenue comes from desktop search, and the company has been banking on translating that success to the mobile channel.  The problem, however, is that mobile search — and thereby mobile ads — are vastly different than desktop search.

When people search using their mobile devices, they’re most likely looking for something specific and then cease searching once they find what they’re looking for.  By contrast, people searching via desktop are much more likely to make other, more exploratory searches.  The experience is just too different between the two.  This doesn’t mean that Google won’t be extraordinary successful at mobile ads, it just means their ad-units and placements will have be that much more engaging and unique.

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2 comments

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    That is an impressive growth rate, considering what most people actually use mobile internet for. I don't think I've ever clicked on an advertisement using the internet on my smartphone, but have several times when I'm using my laptop or PC.

  2.    Reply

    Thanks for the quality of your works a MMW !

    Is the growth organic or does it comes from Admob Network revenue (which Google bought early 2010). In other words, was the Admob turn over already included in the 2010 figures or is its integration responsable for this year's growth ?

    As for mobile search potential for Google, I would say that if keywords will be harder to monetize than on the web, other forms of search, have a tremendous potential (voice, maps, augmented reality). In my perspective, the question is not if mobile search has potential (we will look for many more things outside our home than we do inside), but if Google will find a company (such as Goto.com/Overture) which will show them the way to monetize it.

    Another question would be to know is iPad advertising is to be considered "mobile advertising" as it is to replace home laptops in many cases.