Mobile Ad Networks Heating Up & A Prediction for 2008

In the last year, there has been a great deal of activity in the mobile ad network space.

The Big Two: Google and Yahoo
In September Google announced plans to ramp up a mobile version of AdSense - where mobile content publishers can include targeted ads from Google's network. And in March of this year, Yahoo announced its plans to build a mobile ad network, and that it had signed on MobiTV, Opera, and Go2 to its network.

Buying Spree
Many of the other major players have opted to buy their way into this important sector rather than building their presence organically. Recent deals include:

- Microsoft's Purchase of ScreenTonic in May
- AOL's Purchase of Third Screen Media in May
- Nokia's Purchase of Enpocket in September

Pure Play Mobile Advertisers
The activity over this past year clearly demonstrates that the big players recognize the importance of the mobile advertising market. And while there is some consolidation, the market is still in the early phases with many mobile advertising startups innovating in the sector. AdMob is one of the largest players with nearly 8 billion impressions already served today!

My prediction for the sizzling mobile ad network sector: in 2008, AdMob gets acquired (by Google or Yahoo).

"Mom and Pop" Websites will make over $2.8B in 2007

From Google's latest public 10-Q in August, it reported 2.7B in AdSense revenues for the first half of 2007. That's an increase of 42% over the first half of 2006. And roughly 70% of Adsense revenues go back to the publisher - many who are "mom and pop" web publishers.

Let's assume that the majority (say 75%) of Google AdSense users are small to medium sized websites, since the large web properties either have direct deals with advertisers or a direct agreement with the ad networks that allow them to keep the majority of the revenue.

That means "mom and pop" websites will make roughly 2.84B from Google AdSense. Of course, there are over a dozen other ad networks like Yahoo's Publisher Network, AdBrite, AzoogleAds, etc. that web publishers can use to make money from their sites.

Clearly, the small and medium size websites will make over 2.84B this year.