Close
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Applications
    • Applications
    • Cloud
    • Mobile

    Google Mobile Business to Grow 80% in 2012: Munster

    By
    Clint Boulton
    -
    March 3, 2012
    Share
    Facebook
    Twitter
    Linkedin

      eWEEK content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.

      Google’s (NASDAQ:GOOG) mobile ad revenue will top $4.5 billion in 2012, up 80 percent from $2.5 billion in 2011, according to a prominent Internet analyst.

      The prognostication bodes well for the company’s Android mobile operating system business, which includes smartphones and tablets. Google serves mobile search and display ads on these devices.

      Andy Rubin, Google senior vice president of mobile and digital content, said at Mobile World Congress this week that Google was seeing 850,000 Android activations each day. There are some 300 million Android smartphones in the market, he added.

      Piper Jaffray analyst Gene Munster said this kind of volume momentum could help mobile account for 10 percent of Google’s gross sales in 2012, up from 7 percent in 2011.

      Munster further believes 50 percent of Google’s total mobile sales will come from Android handsets, up from 30 percent in 2011. Average revenue per Android device will rise from $5 last year to $6.50 in 2012 as a result, he wrote.

      “We expect volume to significantly drive mobile revenue as Google increases ad coverage on mobile queries,” Munster wrote in a research note. “We believe pricing improvements will come when Google develops new products catered to improving local commerce.”

      Local commerce products, which include Google Offers paired with the Google Wallet mobile payment service, will be paramount for Google in 2012. Currently, Munster believes mobile cost-per-click rates are roughly 40 percent less than desktop CPCs.

      While many analysts are skeptical that mobile CPCs will markedly improve, largely due to the impatience of consumers who are reticent to click on mobile ads from their handsets and tablets, Munster took a different tack.

      “We believe CPCs will naturally increase and get closer to desktop as the mobile platform accrues similar levels of competition to that of the desktop market,” he wrote. Again, key to this is Google’s mission to find a better way to make money from mobile, local searches.

      Unfortunately, Google Offers and Google Wallet have yet to take off separately, let alone together. Wallet is still only available on one Sprint phone.

      However, Google said at MWC this week that it expected Sprint (NYSE:S) to launch more Wallet-enabled phones this year.

      Clint Boulton
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.
      Get the Free Newsletter!
      Subscribe to Daily Tech Insider for top news, trends & analysis
      This email address is invalid.

      MOST POPULAR ARTICLES

      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Applications

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      Cloud

      IGEL CEO Jed Ayres on Edge and...

      James Maguire - June 14, 2022 0
      I spoke with Jed Ayres, CEO of IGEL, about the endpoint sector, and an open source OS for the cloud; we also spoke about...
      Read more
      Applications

      Kyndryl’s Nicolas Sekkaki on Handling AI and...

      James Maguire - November 9, 2022 0
      I spoke with Nicolas Sekkaki, Group Practice Leader for Applications, Data and AI at Kyndryl, about how companies can boost both their AI and...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2022 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×