In a report published Thursday on the importance of mobile search, research firm eMarketer highlights how the dramatic rise of smartphones and tablets is transforming Google (GOOG)’s business.
The report highlights how Google’s revenue from search ads on U.S. computers dropped for the first time last year and will decline another 7% this year, but overall U.S. ad revenue will continue to increase due to the rapid expansion of the mobile ad market.
In its report, eMarketer said in part: “In 2013, 76.4% of the company’s search ad revenues came from desktop. However, that share will fall to 66.3% in 2014 due to a $770M decrease in desktop search ad revenues year over year. At the same time, the company’s mobile search revenues will increase $1.76B, totaling approximately one-third of Google’s total search revenues. Key contributors to Google’s mobile search growth include its Enhanced Campaigns and Product Listing Ads, both of which contributed to increased click share on mobile throughout 2013 and will continue to do so.”
eMarketer also said that in the field of Google’s overall ad revenues, mobile search is gaining significant share. “Up from 19.4% in 2013, mobile search will comprise an estimated 26.7% of the company’s total ad revenues this year.”
The research firm estimates that Google’s desktop search ad spending will drop $1.4 billion this year, a decrease of 9.4% from 2013, while mobile search, which is projected to total $9.02 billion, compared to $13.57 billion for desktop search, will increase a whooping 82.3% year over year.