Google mobile ad revenues to hit $4bn in 2012

Piper Jaffray analyst Gene Munster says Google’s mobile advertising on its Android OS and Apple’s iOS grew from $1 billion in 2010 to more than double that in 2011, and that this is set to significantly increase again this year.

It all makes Google’s purchase of Admob for $750m look like decent business.

Munster, said: “On the advertising side, one source shows that Android is doing well as a percentage of mobile ad impressions on their network, which we believe makes sense since a greater portion of Android apps are free versus paid.”

He also highlighted that with Android dominating a 50 per cent share of the market worldwide, the OS “ultimately becomes the biggest platform for mobile advertising both for Google and the industry.”

Last month, Andy Rubin, Google’s senior VP of mobile claimed there are 700,000 Android devices activated each day. That’s equivalent to 250 million sold per year, putting it ahead of iOS, which had approximately 105 million iPhones and 40m iPads sold.

Following this news, app analyst Distimo revealed Android Market had reached 400,000 apps, which provides a large opportunity for Google to capitalise on in-app ads with its AdSense and AdMob platforms.

Munster continued: “Mobile now accounts for 10.1 per cent of time spent with media, up from 5.4 per cent in 2008, but only 0.9 per cent of advertising dollars.

“The shift to mobile will likely come at the expense of other over-indexed media like newspapers and magazines, but as we know from the shift to online advertising, the shift is likely to be slow and steady.”

Source:  Mobile Entertainment Biz

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