Google’s mobile advertising business continues to fuel impressive growth for the online search engine pioneer. The company estimates its mobile advertising revenues will likely generate in excess of $2.5 billion a year and growing. Google generates 97 percent of its $34 billion in annual revenue from selling advertising and new CEO Larry Page promises that mobile advertising, including search and social media, will be a prominent part of its growth strategy.
Although Google’s assertive foray into mobile advertising has paid off royally, other technology powerhouses are challenging the company with highly competitive business models. Apple and Facebook promise mobile advertising and pricing strategies, and online audience reaches that rival or exceed Google’s. The year 2012 promises to be a pivotal year in which a few companies could dominate the mobile advertising platform competitive landscape.
This research analyzes Google’s emerging mobile advertising strategy to enable marketers to leverage Google’s platform to reach consumers with targeted messages. The report aggregates and synthesizes important metrics and trends on mobile advertising and marketing to inform executives making critical spending decisions during a down economy. The report evaluates key Google competitors in the mobile ad space. It supports advertising buyers to ensure they can optimize their mobile ad dollar spending. The report focuses particular attention to the competitive strategy of Facebook and Apple in the mobile advertising space.
• Company estimates that global spending on mobile advertising and marketing initiatives will reach nearly $37.5 billion in 2012, a near 15% compounded annual growth rate since 2008. The Asia-Pacific region is leading the mobile charge and will chalk up an estimated budget of $15.8 billion in 2012. In comparison, Europe’s spending on mobile advertising in 2012 will be about half as much ($7.9 billion) while North America’s spending for 2012 will be $11.2 billion.
• Mobile search, especially localized search, will be the dominant activity platform for marketers to engage consumers with branded communications but they should not ignore the potential of downloadable applications, streaming video, WAP and, most certainly, mobile messaging.
• Facebook is expected to roll out mobile ad services by the end of March 2012. Facebook originally planned to introduce the mobile ad platform earlier this year and the project could face additional delays, one of the sources adds. Facebook’s advantage is that it reportedly has over 800 million users with the company expecting to break the billion mark through mobile devices.
• Apple originally required marketers to commit to a spending limit of at least $1 million, but this was later cut down to $500,000. Also, Apple was charging marketers every time a user tapped an ad, which would quickly eat through the budget. But Apple is now making some changes in order to beef up its failing ad service. For starters, it reportedly plans to drop the spending limit from $500,000 to $400,000.
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