The Google money machine continues to churn out cash. Google’s revenue from mobile advertising could hit $5 billion by 2012, according to equities research firm Town Hall Research.
“If Google did nothing, and simply let the growth in smart phones drive mobile search, the business could easily double to $2 billion by 2012," Town Hall argued in a research note, according to Tech Trader Daily. The search giant will likely be able to provide “a superior ROI for advertisers," though, and thus a higher cost-per-click, leading to a significant increase over mobile ad revenues today.
Google’s total revenues will probably reach the $25 billion range by next year. The company said in its most recent earnings call that its annual mobile-ad revenues currently average out to about $1 billion a year.
Keep in mind, also, that the $5 billion estimate includes only sales of mobile ads, not licensing fees from sales of Android-based smartphones.
New research from the Nielsen Co., released earlier this month, shows that Android has overtaken BlackBerry and the iPhone’s iOS to become the most popular operating system in the U.S. Among those who bought a smartphone in the six months leading up to July 31, Android was the most-purchased operating system.
With 31 percent of all handsets, BlackBerry still leads in total smartphone market share, with Apple at 28 percent. Google’s Android has risen quickly to command 19 percent of the market.
Many analysts including Town Hall expect revenue from mobile advertising to eventually overtake traditional, desktop- and laptop-based search ads. Once that happens, Google can expect its mobile revenues to surpass even the most bullish of forecasts.