Google Gets Mobile

Smart phones are becoming more and more widely used throughout the world. Although many believe that the mobile web is the next place for advertising, Google is looking beyond this venue, and onto other things. What’s more popular than the mobile web? Mobile applications (i.e., apps). Mobile apps are the “it” thing for smart phone users, and they are only going to get bigger. AdAge writes that, “[a]ccording to the Kelsey Group, U.S. mobile search advertising revenue, including mobile web and in-app search, is expected to grow from $39 million in 2008 to $2.3 billion by 2013, a compound annual growth rate of 126%. Meanwhile, the latest data from AdMob suggests that more traffic is migrating to apps: More than 60% of the ad requests in its iPhone network come from applications, vs. 40% from the mobile web”.

What will it cost to run ads on apps? “The costs to advertise inside apps is generally at parity with the cost of advertising on the mobile web, according to mobile-ad executives. Standard mobile banner ad rates to reach 1,000 viewers, or CPMs, start at $3 for remnant inventory and $10 and up for the most premium inventory. AdMob said its average CPM for its iPhone network, which serves predominantly in-app advertising, is $11.50”.Will app ads be the next big thing? Developers will definitely have an incentive to create new apps, as ads will be a new form of monetization.