Admob’s dream run continues

By Vivek | March 26th, 2007 at 01:49 pm ET         

Admob today announced that it has raised another $15 million in funding. This was series Series B round for the mobile advertising startup which had raised $4 million in its Series A in September last year. The investment round was led by Accel Partners, with participation from existing investor Sequoia Capital.

Let’s look at some quick calculations. Current ad-impression numbers from Admob - more than 1.6 billion ad impressions served. Considering all of them to be CPC based(Admob does CPM too) with a high enough CTR of 4% and averaged out minimum earnings for Admob after 40/60 split being 2 cents/click gets them $1.28 million in revenues. Not bad at all for a startup just that is in the year 2 of it existence. However I think the above talked about CTR is pretty high. Should be somewhat in the range of 0.6 - 1.0% for most of the publishers. That slashes Admob revs by almost 4 times. In turn this makes the returns not big enough for likes of Google to come in fulltime. Web, TV, and Radio where billions of dollars are involved are still far better targets instead of investing resources to build a advertising platform and culture from the ground up.

Also looking at these number I wonder what plans does Blyk have around ramping up its ad revenues for the free but ad-based mobile service that is is launching in Europe sometime this year.