Google Could Make $5 Billion from Tablet Ads this Year


We all know Google from our beloved mobile platform – Android. However, Android is not the only thing Google is known for. The California based tech giant has its reach across a wide range of products and services, and one of the key businesses of Google is ads. Google Ads accounts for over 94% of the company’s revenues, so we can imagine how important it is to the company. However, with the emergence of smartphones and tablets, most of these ads are viewed on mobile devices. And according to a new estimate by Marin Software, Google could be making close to $5 billion from tablet ads. This will be another feather in Google’s cap which seems to be one of the few companies out there doing well despite the gloomy economic climate. The reason why people are speculating an increase in tablet revenues is because Google changed its policies a bit. According to this changed policy, advertisers will have to pay for both tablet ads as well as PC ads even if their ad is targeted towards PC users. According to Google, the ad performance on both tablets and PCs is almost similar, so the company claims that this won’t make much difference in the overall scheme of things. Tablet ads reap a conversion rate of 3.3% while PC ads have a conversion rate of 3.9%, apparently. This will mean increased revenue for Google while people willing to advertise their product will not be all that excited.

With the tablet market currently on the rise thanks largely to budget tablets, Google’s decision might not be that harsh after all. In the end, all that matters for Google’s clients is to market and advertise their product appropriately and on a larger scale. In the last year, over $8 billion of Google’s revenues came from mobile ads (smartphones and tablets), so this tells us how much the scale of usage has increased. Speaking of tablets, the Apple iPad makes up for more than half of all the tablets in the world. And as we all know, Google is the default search engine on iOS devices and it would desperately want to keep things that way going forward. If last year’s numbers are anything to go by, this year’s number should be substantially more if not double. When it comes to ads, Google really has no competition as of now.

The increase tablet adoption will certainly mean good news for Google and with its own breed of tablets doing exceptionally well in the market, it couldn’t be asking for a better time in the market. However, Apple still holds a large chunk of that tablet marketshare, so Google will have to maintain good terms with the folks at Cupertino.

Source: The Wall Street Journal
Via: Phone Arena