Google: Monetization of mobile ads to rise

• Posted: Monday, February 05, 2007
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• Author: pradhana
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• Filed under: Google, Internet Advertising, Online Advertising

During its announcement of its fourth-quarter results, which beat Wall Street's expectations, Google said it is expecting significant growth in mobile search queries this year with a rise in mobile advertising next year. "It's clear that 2007 will be the year that mobile search query traffic grows substantially.

Our current model is to use targeted text ads and we have evidence that the monetization of those ads is higher than in non-mobile uses," CEO Eric Schmidt said during the company's conference call. "We are making a significant investment in technology around mobile because of the growth rate of mobile and the ultimate scale of that business. You won't really see its financial impact until '08."

Google reported a net income of $1.03 billion, or $3.29 per share, compared with $372.2 million, or $1.22 per share, in 2005's fourth quarter.

Google currently generates most of its revenue from search engine ads, but the company is actively investing to expand into other segments of online advertising, such as display and video ads. Google is also eyeing offline markets such as radio, television, and print advertising. In all the new ad markets it seeks to enter, Google's strategy is to apply the ad targeting technology that has worked so well for it in delivering search engine ads.

"Our focus is to provide the widest reach possible as well as the most efficient way to manage these campaigns across media, and we're seeing already some of the early benefits of that," said Omid Kordestani, senior vice president of global sales.

For more about Google's fourth quarter results, read this article from InfoWorld

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