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Google remains digital ad king, Facebook making gains in mobile, no one else close

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Increased competition in digital advertising doesn’t seem to be hurting Google: the company is on track to increase its market share to almost 33 percent this year, with a commanding 53% in mobile advertising. The projections were made by research company eMarketer based on an analysis of company reports, though both dollar and percentage figures are slightly down on its earlier predictions back in June … 
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Investor disappointment in Google (GOOG) results misplaced, says Warwick Business School professor

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While the market response to Google’s quarterly earnings seems to have been lukewarm, the stock price dipping in after-hours trading and at least six analysts lowering their price targets after the company came in slightly under Wall Street expectations, Warwick Business School Associate Professor John Baptista says that the modest performance is a ‘blip’.

Bapista, who has researched the company for many years, said that although Google’s ad revenues have suffered as traffic shifts from the desktop to mobile devices (something Google wasn’t slow to address), the real growth in the future will be in the cloud, with Google ideally placed to benefit … 
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Samsung’s ad budget exploded past Apple and the rest of the field in 2012

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Apple-vs-Samsung-advertising-ad-budget-2012We have been hearing much about Samsung’s advertising efforts in recent months including its efforts crafting the now well-known ad campaign mocking iPhone line sitters, to some of the companies recent marketing tactics used to target iPhone users. Last night The Wall Street Journal published a new piece outlining Samsung’s increasingly aggressive advertising thanks to new data from research firm Kantar Media. According to the report, Samsung passed Apple in 2012 for ad spending by around $68M in the US:

Outspent by rival Apple Inc. more than three to one in advertising for mobile phones in the U.S. in 2011, Samsung responded with a marketing blitz on TV, billboards, the Internet and print media that moved the Korean company into the pole position last year… In 2012, Samsung spent $401 million advertising its phones in the U.S. to Apple’s $333 million, according to ad research and consulting firm Kantar Media.

Apple spent more than three times Samsung on marketing its mobile devices in 2011. If a slew of recent media reports is any indication, including one from Apple’s own former ad man Ken Segall, many seem to think Apple is losing its advertising momentum to Samsung.

The Wall Street Journal added that executives at carriers said Samsung “also spends more on “below the line” marketing than any device maker. Those funds help pay for in-store advertising, promotions and training for carrier sales representatives that help close the sale.”

To put the spending in perspective for the global smartphone market, Tech/telco analyst Benedict Evans noted the figures above account for around 10% of Samsung global ad budget compared to 1/3 of Apple’s, which also somewhat reflects sales proportions.

Google’s mobile run rate up to $8B from $2.5B last year

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During Google’s financial call today, which we have full coverage of in our liveblog, CEO Larry Page revealed that Google’s run rate for mobile is now at $8 billion. That is quite the increase from the $2.5 billion it announced last year:

This time last year I announced that our run-rate for mobile advertising hit $2.5 billion.  That seemed like a pretty big number — even for Google.  Now we have built up additional mobile revenue from users paying for content and apps in Google Play.  Including these new sources grossed up, I can announce our new run-rate for mobile is now over $8 billion.  That’s quite a business

However, CFO Patrick Pichette added that its run rate for the quarter also included ads and Google Play content revenue. Not surprisingly, the company noted the majority of that $8 billion figure comes mostly from ads. During the call, Page also confirmed there are still roughly 1.3 million Android activations daily:
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Google offers premium 1-year GoMo subscription at no charge, hopes to lead mobile advertising

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Google expanded its GoMo initiative to offer small businesses an opportunity to mobilize their websites for free.

According to Fortune, the Mountain View, Calif.-based search engine teamed with startup Duda Mobile to offer the $9 per month service at no cost for an entire year starting today. Users will save $108 a year, and then they can purchase the premium service after the complimentary period ends—if desired.

In a blog post, Duda Mobile’s Dennis Mink explained the collaboration:

Our hope is that by offering both the education AND the service at no cost for one year, we can help businesses make the shift to mobile more quickly, benefiting both their business as well as us consumers who no longer want to pinch and zoom our way through their regular websites on our phones.


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Oracle on Android: ‘Each day’s worth of activations likely generates approximately $10 million in annual mobile advertising revenue for Google’

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Software maker Oracle estimated that each day’s worth of Android activations makes Google approximately $10 million in annual revenue while also strengthening its Google+ service, German patent blogger Florian Mueller wrote on his FOSS Patents blog today. Oracle made this claim at a German court in regards to its patent infringement claims against the search giant:

While this case awaits trial, more than 700,000 Android-based devices are activated every day, all fundamentally built around the copyrighted Java APIs and the enhanced performance enabled by Oracle’s patents. Each day’s worth of activations likely generates approximately $10 million in annual mobile advertising revenue for Google.

Oracle did not explain its math, however, leading Mueller to suspect that the figure is based “on the assumption of annual advertising revenues of $14 per Android user.” Interestingly, Oracle wrote in court documents “Analysts have predicted that the number of new Android devices will reach 2.5 million per day within twelve months.” However, it is not just about mobile advertising, the success of Android is benefiting Google’s other properties, namely its Google+ social network…


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Heat map: The United States of Android

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Call it a mobile platform heat map of sorts, but we love it. Mobile ad firm Jumptap is out with their July 2011 report analyzing ad-tracking data of about 83 million users on its ad network. The above info graphic immediately captured our attention (via GigaOM) because it tells the story of the iOS vs. Android war in an electoral manner that evening newscasters had trained us to get. As you can see, iOS is doing pretty well in the Northeast and Midweast states, while Android leads in the South and Southweast parts (no, we ain’t making any conclusions here).

Also, Hawaii is a state that falls in the iOS camp, and Alaska over-indexes for both Android and iOS. One word of warning: That pretty chart is sourced from a limited selection of people on Jumptap’s ad network rather then actual sales numbers so the usual caveats apply. One other surprising factoid:


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