Google's Mobile Billions

Mobile advertising brought Google $2.5 billion in 2011. Analysts from Piper Jaffray claim that next year it will bring one and a half times more. Apple is still in flight.

Gene Munster, director of the investment company Piper Jaffray, said that in 2012 Google’s revenues from mobile advertising could amount to $ 4 billion, 150% more than last year.

For comparison, Facebook’s total advertising revenue in 2011 amounted to the same 4 billion evergreen presidents.

It is quite possible that one of the important, but, of course, not the only, premise for making such a forecast was the growth of Google’s advertising revenue last year by the same 150%: in 2011, the company’s revenue in this segment increased from $ 1 billion to $ 2.5.

In addition, do not forget that Android is installed on 50% of smartphones. Only this makes this operating system the largest mobile advertising platform in the world, where Google has the leading violin by default. From this point of view, Munster’s predictions may even seem cautious.

By the way, for the company itself, $ 4 billion is not such a big amount. This is only 9% of its total online advertising earnings in 2011.

As for Apple, despite the excellent sales of the iPhone (the company managed to sell 120 million devices in three years), the company has not been able to maximize the profit of its own advertising service iAd.

Munster called newspapers and magazines the main driver of the growth of the advertising market, for which mobile device users spend more and more time every year. But the growth of the number of “mobile” readers is slow. In 2008, mobile devices accounted for no more than 5.4% of the time spent watching and reading news materials, in 2011 this figure barely crept up to 10.1%. Moreover, mobile advertising accounts for only 0.9% of total advertising revenue.