Google benefiting from mobile advertising growth
The rapid rise of mobile devices will mean big money for Google in the coming months, as a report from online advertising solutions provider Marin Software predicts that smartphones and tablet computers will account for 25 percent of the search giant's paid search clicks by the end of the year.
This is a sizable jump from 5 percent in January 2011. According to Marin Software, mobile ad revenue for Google is growing 4 to 8 times faster than that generated from desktop computers.
Mobile users tend to be more engaged with online advertisements than desktop users, the report notes. Furthermore, mobile search ads are generally less expensive than desktop ads, making them a lucrative marketing channel for retailers and advertisers.
"Mobile cuts across all online marketing channels, whether search, display or social," says Marin Software vice president Matt Lawson in a press release.
"The combination of explosive user adoption of mobile devices, coupled with favorable performance characteristics for ads, makes mobile search an increasingly critical growth opportunity for both advertisers and Google," he adds.
A January 2012 study from eMarketer also signals a bright future for mobile advertising, predicting that US mobile ad spending will reach $10.8 billion by 2016, up from $1.4 billion in 2011.