Google’s ad run rate has more than doubled in the last nine months or so, Wedge Partners analyst Martin Pyykkonen wrote today in a research note (and as reported by Investor’s Business Daily). The company’s mobile ad run rate now exceeds $5 billion a year, and its mobile ad revenues now account for roughly 10 percent of overall revenue, Pyykkonen wrote.
This may seem like anecdotal evidence in a fast-moving space, but Google is a solid barometer because of its sheer dominance in mobile advertising. Google claimed a 57.1 percent share of the U.S. mobile ad market last year, according to eMarketer, it owns a whopping 95 percent share of the market for mobile search ads, and Opera Mediaworks has reported that Android phones delivered more mobile ad impressions during the fourth quarter of 2012 — the first time that has happened.
Meanwhile, Google has an enormous amount of advertising inventory through its ubiquitous search app as well as all those Android applications. And a glut of inventory due to the explosion in mobile apps and websites has been a major factor in holding ad rates down. If Google truly is seeing ad rates ramp up, the rest of the industry is surely seeing the same thing. And that’s solid evidence that mobile advertising should finally soar in the next year.