Marin Software has released a new report looking at mobile search advertising around the world. The report cites data from Cowen and Company about Google’s estimated mobile revenues, which indicates that Google will make as much as $20 billion in mobile revenue in 2016.

“According to a research report from Cowen, Google earned $2.5 Billion in mobile rev- enue in 2011,” says the report. “And by 2016, it’s estimated that mobile could drive $20 Billion in revenue for the search giant. The exponential growth in mobile advertising largely tracks consumer adoption trends. Smartphones now have a greater than 50% penetration in the US mobile phone market. And mobile advertising isn’t just limited to phones. In fact, sales of mobile devices (phones and tablets) running Google Android are expected to have eclipsed ‘PC’ sales in 2012. And consumers worldwide have already bought more than a billion iOS and Android devices.”

“The emerging world of the mobile-enabled consumer is quite different from the pre- smartphone world,” it continues. “In this new reality, the walls between online and offline commerce are crumbling. Case in point: today’s consumers routinely check product reviews and compare prices online while they’re in a brick and mortar store.”

This is why Google launched the controversial Enhanced Campaigns model for AdWords last week.

You can find Marin’s full report here.