Google’s 2016 Mobile Revenue Projected to Reach $20 Billion

Mobile already means big business for Google. But if the latest industry projections manifest, business is going to get much, much bigger for the Internet search behemoth in no time at all.

Google’s estimated mobile revenue may reach $20 billion in 2016. That’s the estimate presented in a new report issued this week by Marin Software.

“Google earned $2.5 Billion in mobile revenue in 2011,” the report reads, citing the latest data from Cowen and Company. “And by 2016, it’s estimated that mobile could drive $20 Billion in revenue for the search giant.”

This week, Marin proposed that worldwide tablet adoption is going to contribute substantially to Google’s promising prospective fortunes in mobile. Marin expects tablets to drive 20% of Google’s paid search ad clicks in the U.S. before 2013 draws to a close. Given that tablets only drove 10.7% of paid search ad clicks in December 2012, that’s an impressive pop for just twelve short months.

All told, Google is widely thought to be on pace to realize $9.9 billion in mobile ad revenue this year. If so, it would be a laudable improvement over $5.8 billion in mobile ad revenue for 2012.

“While the rise of tablets is no secret, what’s interesting is tablet users are engaging with search ads and converting in ways that closely resemble desktop usage,” explains Matt Lawson, VP of Marketing and Partnerships at Marin Software. “Solid user engagement combined with favorable performance characteristics make search ads on tablets hard to resist for advertisers.”