Google Makes Its Case for Mobile Tomorrow: Some Clues About What It May Say
On Thursday February 10, Google is hosting an event at its New York office called “ThinkMobile”, where Mary Meeker, Partner at Kleiner Perkins, and Dennis Woodside, SVP, Americas Operations and Jason Spero, Head of Mobile, Americas, will be talking about trends in this space. In general, Google has been pushing its mobile marketing bona fides, with news reports leaking out of the company’s intention to redouble its efforts on building out this business line.
“I don’t see any reason why mobile advertising won’t be relevant to every single advertiser,” Karim Temsamani, Google’s first-ever head of mobile advertising, who began the job in October and made his public debut this week in an interview with Reuter.
According to Temsamani’s comments, Google is more interested in volume – as in having more advertisers sign on – than in raising rates, even though analysts believe it could command higher prices for mobile than its desktop ad model. “Our focus should be now to get more of the advertisers coming through, not hiking rates in one way or another,” he said.
Such pitches is one sure thing that can be expected from tomorrow’s event. What else might attendees see and hear?
A Push for Separate Mobile Campaigns
Google is rich with case studies documenting the advantage of this strategy. It told recently of Roy’s Restaurants, which achieved an 800% ROI by using a separate mobile strategy. According to Google, some advertisers experience an 11.5% average increase in mobile CTR when they run and optimize a separate mobile campaign, compared to their mobile CTR on a combined mobile and desktop campaign.
A Focus on Android and Subtle Slaps at Apple
Google’s mobile ad efforts are separate from its Android product and Temsamani told Reuters that the market for mobile advertising is growing so fast that there is sufficient room for both Google and Apple to thrive – not to mention that Google’s mobile ad efforts are much broader than Apple’s. “I don’t see this as a zero sum game as much as we don’t see Apple iOS and Android as zero sum games,” he said.
Yet new numbers from Piper Jaffray suggests that Android could reap $1.3 billion in mobile advertising next year (via eWeek). Using Google’s own figures that its mobile ad business was operating at a $1 billion run rate through 2010, Piper Jaffray analyst Gene Munster noted Google generated $850 million in mobile ads for the year with Android accounting for $130 million of this total, or $5.90 average revenue per user.
Munster comes to the $1.3 billion in mobile ad revenues by suggesting that Google land 133 million Android users by 2012 – each of which then generates $9.85 per year on advertising.
The Usual Tips and Tricks
Google is known for its user-friendly, helpful pointers on how to use its products and mobile advertising is proving no exception. It suggests several here for companies that wish to set up the separate mobile campaigns that it is pushing.