This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Google: Tablet Ads Might Bring a Windfall

By Jon Fortt, CNBC, Tech Correspondent

NEW YORK ( CNBC) -- Earlier this week at Google's (GOOG) I/O Conference, I spent some time with Vic Gundotra, Google's senior vice president for social.

Don't let his title fool you: Gundotra has quite a history in mobile, having led Google's mobile app and advertising efforts before new CEO Larry Page put him in charge of strengthening Google's weakest flank. (Google has foundered in social media as Facebook has risen.)

In my one-on-one with Gundotra, he gave some intriguing stats about smartphone growth, tablet monetization, and how Google plans to cash in.
More from CNBC
Google Launches Chrome PCs
Google Takes to TV
Suit Opens a Window Into Google

An edited transcript:

CNBC: One of the concerns of the financial community is that while Google is still growing by leaps and bounds, spending is growing, too in areas like mobile. Can you give more color on how mobile is starting to emerge as more of a business?

Gundotra: We announced about six months ago that the mobile search business had exceeded a billion-dollar run rate. That business continues to track with smartphone sales. We're very optimistic and enthusiastic about the future of the business as consumers move to smartphones and do searches on those smartphones just like they did on the desktop. In addition to search, however, we think there are many other exciting revenue streams.

CNBC: You said tracking smartphone sales, but in your hand you're holding an Android tablet. What about tablet sales? Is that a display ad opportunity?

Gundotra: That's a great question. The tablet device is a bigger device. Our data shows that a tablet device seems to have the same kind of monetization as a desktop. It's even more like a desktop than a smartphone. We're not exactly sure of the reasons why. We think maybe people spend more time on it, it's easier to read, people spend more time browsing and searching, less task oriented than they might be on a smartphone. So we think the explosion of tablet sales also gives us an opportunity that may, in fact, from a monetization standpoint, be even bigger than that of smartphones. So it's kind of early -- we don't know for sure and we don't want to be premature in jumping to conclusions -- but the early indications are super encouraging.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
AAPL $107.76 -4.40%
FB $87.23 -2.50%
GOOG $598.06 -3.30%
TSLA $238.68 -4.20%
YHOO $31.61 -2.00%


Chart of I:DJI
DOW 16,058.35 -469.68 -2.84%
S&P 500 1,914.07 -58.11 -2.95%
NASDAQ 4,636.1050 -140.4030 -2.94%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs