Google: the Future of Mobile Advertising?

future_advertising_google_featureWhat made Google a multi-billion dollar company today will help the search giant pioneer the next revolution in mobile advertising: hyper-relevancy. Google AdWords enabled advertisers to target users with unprecedented precision. Google’s acquisition of mobile advertising platform, AdMob, signals the next evolution in advertising. Google will deliver advertising content consumers actually want — making it lucrative for all parties involved. Mobile adds a new layer of relevancy to target users with even greater accuracy: location. While Google’s mobile ad platform takes a backseat to Apple today, many experts predict the combination of Google’s ad targeting technology and Android growth positions the search giant to jump in the drivers seat and take the lead in what is projected to be a $3.3 billion dollar market by 2013. smartphone_ads

Sonya Chawla of Rhythm New Media notes “tons of money is being shifted out of TV and is looking for a new home.” Most marketing dollars are allocated to online marketing. However, there is an emerging mobile market. Overall, comScore estimates U.S. users viewed 4.3 trillion display ads in 2009, up 21 percent over 2008. Interpublic’s Magna, said that US advertisers will spend $229 million on mobile media this year, up 26% over 2008. With an estimated 270 million mobile subscriptions in the US, opportunity to target these users is immense.

“At this point, the market seems broken down largely as iPhone on one hand and everyone else on the other,” writes Mashable. According to AdMob, Google’s #2 Android platform is gaining steam and positioned to surpass Apple’s declining iPhone OS platform. How? “Mobile search and location based services will allow small local retailers and service providers to reach consumers like never before,” writes Advertising Age. Mobile search advertising is about search relevancy, and that’s Google’s domain.

How will Google surpass Apple? Search advertising is Google’s bread and butter, while Apple has to outsource it. Google’s AdMob provides “better engagement for advertisers in their interactions with mobile users; more effective monetization for publishers and developers and more relevant ads and access to more content (supported by ads) for users,” writes Search Engine Watch. Indeed, just as Google outpaced online advertisers by delivering relevant content, it will take this superior skill-set to mobile.

How will Google make advertising hyper-relevant? Google’s ad targeting technology and Android growth positions the search giant ahead of the curve. Imagine using Google search to find a new coffee maker. In the search results, you have the nearest Bed, Bath and Beyond, with drop-down images of top-rated coffee makers and a coupon advertisement to buy them. You select the coffee maker you want to buy, find it in store and scan your coupon advertisement on your phone to get BB&B’s famous 20 percent off discount. This concept moves beyond AdMob’s 7.1 billion mobile banner and display ads. Google has proven, time and again, it has the creativity and innovation to change markets (think AdWords). Could Google steer the mobile market in a new direction? Chances are, they’re already cooking up a plan to take over mobile advertisements.

Want to learn more about mobile trends? Read our 2010 Mobile Trend Report.

Image by Iva Villi from Stock.Xchng



Hi Ethan

Great post. Google recently admitted to paying a percentage of their mobile ad revenues to the mobile hardware manufacturers who use the Google apps as the default search engine, so I think that’s going to be a big part of Google strategy to keep a hold on the market.

I don’t know if you’ve seen but Yahoo! has released quite an interesting app called “Sketch a search” where you can perform a local search by selecting the area on the map making local searches and ads even more relevant.

Ethan Lyon

Hi Caliban — Thanks for sharing your point about Yahoo! Google does something similar with their local search, but not by map. You can use Google Maps however to find local businesses. Either way, Google and Yahoo could certainly utilize mobile ad space to sell local placements.


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