Electricity Now Blog's: Apple's Success is Also Google's Gain as Mobile Advertising Balloons

Sunday, October 16, 2011

Apple's Success is Also Google's Gain as Mobile Advertising Balloons

Google is smiling as more people snap up smartphones thanks to its advertising prowess, and Apple?s success with the iPhone 4S will further pad the Internet search leader?s bottom line.

And now that the holiday shopping season is approaching, there?s no doubt people will increasingly see ads through their smartphones.

The term ?search engine giant? should probably be replaced with ?advertising behemoth? as a fitting descriptor of Google. As it reported last week, the company?s revenue increased 33 percent compared to a year ago and it now has a mobile revenue run rate of $2.5 billion.

?We think mobile is near a massive volume inflection point,? wrote Susquehanna Financial Group analyst Herman Leung in a note to investors on Friday. ?At these growth rates, we think mobile revenue could be larger than display (advertising revenue) by 2012.?

That growth is only going to continue as the mobile advertising space balloons.

As evidence of that, mobile ad network InMobi served 112.5 billion mobile advertising impressions across the globe for the quarter ending in July, a growth of 22 percent over the previous quarter. The company reported that smartphone growth is the primary driver, outpacing the growth rate of advanced phone ads by 2 to 1. It also projected that Android would be the top global mobile ad platform by the end of the year.

According to Business Insider, Google is showing the clear case for what mobile is going to do to the advertising markets and companies that don?t jump in with mobile campaigns are going to be left behind in the dust.

And mobile Internet research firm In-Stat has projected that mobile application downloads will approach 48 billion in 2015, meaning in-app ads are also going to be growing exponentially -- another boon for Google, which offers its Google Mobile Ads platform.

Obviously, Google knew what it was doing when it threw down $750 million to buy mobile advertising company AdMob.

?Cha ching? says Google.

Would you recommend this story? YES NO