Google Mobile Ad Revenue: $4.61 Billion

Posted by Sam Churchill on

Google earned more than half of the $8.8 billion advertisers worldwide spent on mobile ads last year, reports E-Marketer. The company accounted for nearly one-third of all digital ad dollars spent globally, according to eMarketer’s first-ever figures on worldwide digital and mobile advertising revenues.

eMarketer estimates that Google made $4.61 billion in mobile internet ad revenues last year, more than triple its earnings in 2011. This year’s mobile revenues will be up a further 92.1% to $8.85 billion.

Facebook—which had no mobile revenue in 2011—is expected to increase mobile revenues by more than 333% to just over $2 billion in 2013, and account for a 12.9% share of the global net mobile advertising market.

Combined, three companies—Google, Facebook and Twitter—account for a consolidating share of mobile advertising revenues worldwide.

Across all digital platforms, Google continues to reign as not only the largest beneficiary of digital ad spending in the US, but worldwide as well, eMarketer estimates. The search giant made $32.73 billion in net digital ad revenues in 2012, equivalent to nearly 31.5% of total worldwide digital ad spending that year.

Overall, US mobile ad spending will reach $7.65 billion this year, up from $4.36 billion in 2012. The bulk of US mobile ad spending will go toward search and display, especially banners and rich media ads, says eMarketer.

Google could increase ad revenue by lowering wireless costs. Wholesale spectrum purchases, especially in the “greenfield” 600 MHz and 2.6 bands, could be in the cards.

AT&T’s Randall Stephenson wants content providers to pay them to subsidize consumer cost. AT&T doesn’t want 600 MHz competitors threatening their comfortable 50% profit margin.

Critics are concerned that the FCC’s presumed new chairman, Tom Wheeler, will be sympathetic to the desire of duopoly carriers to dominate the 600 MHz band and keep prices artificially high. That, of course, is Stephenson’s job.

Posted by Sam Churchill on Thursday, June 13th, 2013 at 9:31 am .

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