Google Aims to Increase its Share of Mobile Ad Dollars

Advertisers are rushing to get their messages onto mobile devices this year. In previous blog posts, I’ve written about the mobileprofessionalgoodchanging mobile market with respect to the strength of private publishers versus weakening ad networks. This shift largely impacts big players like Google and Apple.  While Apple accounts for a significant share of ads served and marketer funds in the mobile market, Google hopes to change all that.

Apple was first to market with its impressive iPhone and iPad devices. Consumers quickly embraced the process of downloading apps from the iStore. After all, they’d been paying for and downloading music to their iPod touches before that. This is one reason that 75% of all mobile ad money is spent in the Apple ecosystem. With a projected $7.3 billion mobile ad market in 2013, that’s a lot of money.

Here’s a comparison of the ad rates marketers are willing to spend to connect with users of Apple devices versus Android (Google) devices based on CPMs:

  • iPhone $0.88
  • iPod  touch $0.98
  • iPad $1.16
  • Android tablet $0.53
  • Android phone $.50

Apple’s continued dominance in the mobile ad revenue market may seem curious to some industry observers. After all, Android phones outsold Apple phones last year.  Writing for VentureBeat, John Koetsier notes that the bigger problem for Google may be Google Play where a quality experience has been lacking and where a redesign is underway.

The eventual higher conversion rates for ads displayed on Android devices, along with more allegiance from its user base which is considered affluent and tech-​savvy, should lead marketers to allocate more ad money to Google. Koetsier notes that just when that will happen remains uncertain.

If you’ve been spending on mobile, have you experienced a better return on ads served through Apple devices?

[Sources: Kelly, Heather. Android dominated smartphone sales in 2012. CNN​.com. 14 Feb. 2013. Web. 30 Apr. 2013; Koetsier, John. 75 centers of every dollar spent on mobile. Venturebeat​.com. 18 Apr. 2013. Web. 30 Apr. 2013] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.