Android Could Generated $1 Billion in Advertising Revenue in 2012, Forbes

Google could generate over a billion in Android-related advertising revenue in 2012. According to Piper Jaffray analyst Gene Munster, "Android generated $5.90 per use in mobile advertising in 2010; he sees the total increasing to $9.85 in 2012. He adds that the Android Market app store also could boost monetization per user from in-app advertising […]

Google could generate over a billion in Android-related advertising revenue in 2012. According to Piper Jaffray analyst Gene Munster, "Android generated $5.90 per use in mobile advertising in 2010; he sees the total increasing to $9.85 in 2012. He adds that the Android Market app store also could boost monetization per user from in-app advertising over the next two years."

Pointing out that Google has said it is on a $1 billion annual run-rate in mobile advertising, he estimates that the company had $850 million total mobile revenue in 2010, with Android generating about 16% of the total, or around $130 million, which would translate to $5.90 per Android user. (That implies about 22 million Android users for 2010.) By 2012, he thinks there could be 133 million Android users generating $9.85 a year, which would mean $1.3 billion in Android-related revenue.

By 2012, he thinks there could be 133 million Android users generating $9.85 a year, which would mean $1.3 billion in Android-related revenue.

Munster notes that former CEO Eric Schmidt last summer said he though Android could be a $10 billion business if there were 1 billion users each generating $10 a year -- and the analyst contends the company is well on the way to hitting the $10 per user level.

[tags]mobile adevertising,monetization[/tags]

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