Report: Google Commands 97% of Mobile Search Advertising, Thanks To iPhone

Google´iPhone Mobile now commands 5% of the over all search spending in US and 97% of that market has been cornered by Google, according to a report by banking and investment firm Macquarie Group, using Efficient Frontier data. The report estimates that the mobile search spend could grow to $1.1 billion by the end of this year, which would represent a rise of 10% compared to 2010.

Google’s competition Yahoo/Bing only commands around 3.2% of the mobile search ad spend. The results are the most convincing indication that Google is now a real monopoly, when it comes to Mobile Search. This fact was also eluded to by Eric Schmidt, Google CEO, when he recently commented that “mobile is growing faster than the companies internal projections”.

The report also has a very pertinent analysis on the role that iPhone has played in enabling Google dominate the mobile search space. According to the data, 95% of all searches from iPhone are made on Google, and a good 50% of these search originate from the toolbar.

We’ve seen data that shows that while Google absolutely dominates searches emanating from the iPhone (95%+), ~50% of iPhone Google searches come from the toolbar, 42% from Google’s homepage and less than 10% from Google’s app. This is an absolutely critical point, as it indicates that Apple has significant influence over GOOG’s mobile search share. If Apple were to make Bing the default search provider through its toolbar, Google’s share could be significantly impacted.

Google already has its hedge in place in the form of Android, in case Apple ever decides to make Bing a default search engine on the iPhone toolbar. However, keeping in view the history between Microsoft and Apple, it is impossible to imagine Microsoft getting any help from Apple. At least as long as Steve Jobs is running the affairs at Apple.

Google Search Share

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