It will be no surprise to anyone that Google generates a huge amount of income each year from its online advertising platform. What may come as a surprise is exactly how much money Google might earn during 2013 from advertising on tablets alone. According to a report issued by Marin Software, Google may earn as much as $5 billion in revenue from selling ads on tablets in 2013.
Marin Software is a company that helps advertisers purchase Web-search advertisements. Google has offered no official comment on the report. Google has also recently increased the price that advertisers pay to show messages on mobile devices such as tablets. It also changed the ad system forcing advertisers to purchase ads on tablets even if they only want to reach users on computers.
Google says that this change was made because the line between computers and tablets is becoming less clear and performance between computers and tablets similar. The effectiveness of ads on tablets is also increasing with a gain of 31% during 2012. The report says that the conversion rate of tablet search ads was 3.3% versus 3.9% desktop search ads at the end of 2012.
The increasing conversion rate for tablet advertising will increase and prices for tablets to the same levels of those of desktop apps by the end of the year. Currently tablet advertisement rates are approximately 17% less than computer ad rates. Marin also noted that online advertisers are spending more of their ad budget on tablets in the are on smartphones.
[via Wall Street Journal]