Larry Page says there are more than 190m Android devices in use, with ads raking in equivalent of 7% of Google revenues
Google's chief executive Larry Page says that there are now than 190m Android devices in use, and that mobile advertising through it is on course to generate $2.5bn (�1.5bn) annually.
Speaking at the company's earnings results, Page said: "The growth of Android is mind-boggling too. Over 190m devices have now been activated globally. I'm super-excited about the soon-to-be released new version of Android called Ice Cream Sandwich, that's right, Ice Cream Sandwich. You won't believe what we manage to get done in this release."
He added: "We're also seeing a huge positive revenue impact from mobile, we just grown 2.5 times in the last 12 months, to a run rate of over $2.5bn. Generally, I found that high-usage products will make a lot of money over time for well-managed technology companies, and that's why it's so important to run these businesses for the long term."
However, Page did not reveal exactly which mobile platforms contribute to Google's mobile revenue. While Android is significant in sheer numbers, a Google executive revealed in congressional testimony in September that two-thirds of mobile search comes from mobile devices running Apple's iOS software.
The revenue from mobile is, so far, small compared with Google's overall revenues, which over the past four quarters have totalled $35.7bn. That would make mobile equivalent to about 7% of Google's annual revenues if its revenue were spread over the entire year ? though Page was apparently implying that the past quarter's performance would make the income equivalent to that amount if reflected back over the year, rather than that it has so far taken in that amount.
Nikesh Arora, Google's chief business officer, said that in mobile advertising, "Our revenue growth continues to accelerate even in mobile, driven primarily by mobile search. This growth obviously is driven both by the underlying expansion of Android devices and of tablets, as well as stellar performance of our sales teams who are working closely with our customers to help them craft compelling mobile advertising solutions."
He added: "Many advertisers have greatly increased the size and frequency of their mobile campaigns. Mobile is becoming a must-have. This includes clients like InterContinental Hotels Group, which spans pretty much across our entire portfolio of properties including Mobile search, Mobile GDN and AdMob."
Source: http://www.guardian.co.uk/technology/2011/oct/14/android-google-ad-revenue
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