Is Google Moving Fast Enough In Lucrative Mobile Search Advertising Business?
Google, the world’s largest search engine, have been having a hard time to make money from advertising on mobile. It continues to be an incredible cash machine, when it comes to search on “desktop pcs”, the search engine giant yet to prove itself on mobile devices?
The longtime Internet powerhouse, Google continued its global market dominance in lucrative search business, but soon expected to witness stiff competition from recently announced Facebook Graph Search. Other competitors such as Microsoft and Yahoo! are also trying to develop strategic competitive advantage with mobile.
Do you think Google is moving fast enough in lucrative mobile search advertising business? Please post your comment below!
- Google’s opportunity in mobile search is immense. The Mountain View, Calif.-based company wrestles with the challenge of making money from the mobile computing boom.
- Spending on mobile search ads in the U.S. is expected to climb 55% to $3.6 billion next year.
- Google controls a 93.3% share of the U.S. mobile search ad market.
Google said its revenue rose 39% to $11.3 billion in the fourth quarter, excluding advertising sales that it shares with partners. Net income rose to $2.89 billion, up 6.6% from a year ago. It’s cost per click on ads overall fell 6% in the fourth quarter from a year ago.
“We’re in some uncharted territory because of the rapid rate of change in these things, but I’m very optimistic about it… We should be designing for the kind of mobile phones that we have right now that are state of the art… I think the C.P.C.’s will improve as the devices improve, as well.” said Larry Page (+LarryPage), Google CEO.
Nikesh Arora, Senior Vice President and Chief Business Officer at Google said, the fall was due to Google’s tougher enforcement of its rules for partners that run its advertising. The results – which included reducing the number of adverts carried by some sites and limiting the apps that are offered to users for download – were intended to improve user experience and benefit Google in the long term”.
Nikesh also gave a tidbit on YouTube. Gangnam Style, the most-watched YouTube video ever, earned $8 million in ad revenue for K-pop star Psy.
Mobile mobile advertising experience: