Thursday, May 29, 2008

Mobile Ad Revenue Bigger than Web Ad Revenue?

Google CEO Eric Schmidt says mobile advertising would make more money than advertising on the traditional Web in a few years.

That could be a huge number, though some might question whether the numbers are achievable. Analysts at Piper Jafray, for example, peg U.S. Internet advertising at about $30 billion in 2008.

What isn't clear is whether mobile advertising represents another $30 billion or will augment the growth of PC-based Internet advertising.

Schmidt seems to be the former, not the latter.

Schmidt pointed to reports of staggering mobile internet usage by iPhone users as an indication of the platform's viability and noted that iPhone makes the mobile internet lucrative by equipping users with a good mobile Web browser.

Skyfire Labs in late May raised $13 million in series A venture capital to create a new mobile-optimized browser, which is some indication of thinking that mobile apps are promising. And since advertising is based on monetizing attention, the investment suggests some thinking that a sizable revenue model is available.

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