Google is able to muster massive revenue through mobile ads alone. For the record, mobile ads refer to the ads Google displays on smartphone devices and tablets. Larry Page, Google’s CEO, said last Thursday that Google’s mobile ad revenues program was standing at a $5 billion annualized run-rate. And this is huge! According to a recent research by Cowen analysts Jim Friedland, Google will be able to pull it’s mobile ad revenues to a whooping $5.8 billion in 2012.
With smartphone devices and tablets become hugely popular around the globe, Google knows where the future lies. And so, Google is making all that it can to make the most out of this market. Jim Friedland believes that currently, Google is able to get a total of $7 per year from every single smart mobile device that is being used. This mounted to a total of $2.5 billion in 2011.
However, things are changing in 2012. The total number of smart mobile devices that were being used in 2011 was estimated to be 509 million. This figure is expected to nearly double to 914 million by the end of 2012. This means that a corresponding surge in the net mobile ad revenues of Google will also take place. The estimates are that from $2.5 billion in 2011, Google will surge to $5.8 billion in mobile ad revenues in 2012.
These estimates that have been projected by Friedland are quite right and stand in line with estimates put forth by a number of other sources. Also, he thinks that with more and more smart mobile devices entering into the market, Google may also be able to squeeze a tad bit more from each of them, say $8 from each such device per annum. This will significantly boast the net revenues for the company.
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