Google could get as much as $5 billion in revenue from selling advertisements via its search engine on tablets in 2013. The info comes from a report by Marin Software, one of the top firms that allows advertisers to buy Web search ads.
The report comes after news broke out that Google intends to increase the prices that advertisers have to pay to show messages on its search engine on mobile devices. Tablets were the main focus here, since they are growing a lot faster than any other segment right now and they are seriously killing notebooks. Also, last week Google changed its ad system requiring advertisers to pay for ads on tablets even if their purpose is to reach PC users. Google wants to make a clear distinction between tablets and PCs, although the ad performance on both device types was similar.
The effectiveness of search ads on tablets increased 31% in 2012 and the conversion rates on slates are expected to eclipse those of desktop PCs by the end of the year. At the end of 2012 the conversion rate of the tablet search ads was 3.3% versus the 3.9% for desktop search ads. Advertisers are already spending more of the ad budgets on tablets than on smartphones, so that tells us a thing or two about the trend…
