Warc, 14 February 2013
NEW YORK: More than half of advertising could be online
within five years, claims Google's chief business officer.
Speaking at the D: Dive Into Media conference, Nikesh Arora
observed that while the global advertising industry is worth around $800bn,
online advertising accounts for less than $100bn of that figure.
"There is a reasonable probability that over 50% of
advertising goes online in the next five years," he said.
"The big tipping point we're waiting for is
internet-connected televisions," he added. "We're waiting for things
going from 'nice-to-have' to 'must-have.'"
Elsewhere, a new report suggests Google could generate $5bn
in revenue this year via the sale of advertisements on its search engine on
tablets.
The company has already increased the prices that advertisers
pay for ads on mobile-devices, bringing them up to the level of ads on PCs
saying that "the lines between devices are quickly blurring" while ad
performance is similar.
Marin Software, however, expects conversion rates from
searches on tablets to exceed those on PC during the course of this year and
says that advertisers are already spending more of their ad budgets on tablets
than on smartphones.
"Either tablets have overperformed or smartphones have
underperformed," observed Matt Lawson, Marin's chief marketing officer.
By the end of 2013, tablets are forecast to account for 20%
of mouse clicks on Google's search ads in the US, as more people use them to
research and shop online.
Google generated about $40bn in total ad revenue in
2012.
Data sourced from AllThingsD/Wall Street Journal; additional
content by Warc staff
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