The landscape of the computing world has sharply changed in recent years. With the rise of tablets and decline in PC sales, advertisers as well as companies such as Google are now more interested in capturing the mobile platform. According to a report, Google is all set to bag an estimated $5 billion from its ads on tablets alone during the current year.
During 2012, the total mobile revenue that Google’s advertisements across mobile devices generated was $8 billion. While that is very substantial, analysts claim that the profit margins for the search giant are all set to go through the roof this year.
One of the key reasons for this could be that Google has recently altered its ad system so that advertisers must pay for ads on tablets. Even if a given advertiser wants to have his ads displayed only on PCs, he is bound to pay for tablet ads too. The policy seems understandable because the dividing line between PCs and tablets has eroded over the last year or so.
With this new policy, the report from Marin Software estimates, Google will be bagging a revenue of nearly $5 billion from tablets alone. Not only that, the revenue will increase further as Google gradually brings the price of search ads on tablets at part with PC ads. Currently, tablets ads are priced 17% lower but within this year, it is expected that the price of ads across the two platforms will even out.
Moreover, the Android platform is exploding, amassing hundreds of millions of users into its fold. The rapid growth of the platform gives Google a key advantage in securing a huge audience for its search ads across tablets.
Source: WSJ
Courtesy: BGR
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