Google Inc. (GOOG): $5B in Tablet Ad Revenue in 2013

Google Inc. (NASDAQ:GOOG) has been working to take advantage of a more mobile population, transitioning much of its ad platforms into mobile entities that can be effective on smartphones and tablets. And according to some research by a Web search ad-buying firm, Google is expected to make a dent in the tablet market during this coming year, which essentially reflects the continuing growth of mobile.

Marin Software, which has clients that pay about $4 billion per year on search ads, determined in its research that Google Inc. (NASDAQ:GOOG) may produce as much as $5 billion in ad revenue fro tablet devices in 2013. This seems to not only take into account that the company decided to raise its prices on search ads on tablets, and changed its policy to charging advertisers for tablet advertising even if the clients was seeking a desktop-only ad. This latter change, Google says comes from the company’s data that says its tablet click-through rate has become similar to PCs and that the lines between PCs and tablets are “blurring.”

Google Inc. (NASDAQ:GOOG) claimed that in 2012, its tablet-ad effectiveness has jumped more than 30 percent over 2011, to a conversions rate of 3.3 percent, while PC ads posted a conversion rate of 3.9 percent. Google expects that tablets will catch up and surpass PCs in the short term. Currently, Google tablet ads cost about 17 percent less than PC ads, but the re-balancing of its ad rates apparently shows the confidence that Google has in tablet ad sales.There is an expectation that Google may produce nearly 10 percent of its search-ad revenue from tablets, and is expecting to get 20 percent of its total clicks come from tablets.

Tablets make up about 45 percent of the total PC market.

What are your thoughts about these numbers? Will Google Inc. (NASDAQ:GOOG) make an impact with tablets, and will tablets pay off for the company in the long run? Give us your thoughts in the comments section below.

DISCLOSURE: I own no positions in any stock mentioned.

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