Thanks to the increased mobility and decline of desktops, Google is experiencing a time of change. Although the results for 2012 were positive – the company achieved its first $ 50 billion annually in revenue – the company needs to prepare for a transformation, according to analysts.
According to New York Times, mobility is growing as Google’s largest market is weakening. The percentage of clicks from desktops has dropped from 77% to 73% in the last six months, while clicks on tablets and smartphones have gone from 23% to 27% in the same period, according to data from Adobe.
The problem is that clicks on retail ads coming from tablets are worth 16% less than desktop computers – even with the 16% increase in the value of clicks on tablets in the last year. On the other hand, the price of clicks on smartphones dropped 11%.
The good news for Google, however, is that even though mobile search is less profitable, the company owns the entire mobility market. It now remains for Google to know how to increase the number of clicks on mobile devices to offset lower revenue.
Last quarter results
The company recorded revenues of US $ 14.42 billion in the period ended December 31, 2012. The result represents an increase of 36% over the same period in 2011.
Advertising revenues, based on gross values, without deducting traffic acquisition costs, reached US $ 3.08 billion. And operating profit was $ 4.27 billion.
“We ended 2012 with a strong quarter,” said CEO Larry Page. “Revenue rose 36% year over year and 8% in the quarter. We reached $ 50 billion in revenue for the first time last year. It is not a bad achievement for just a decade and a half of company. A great time to be at Google “, finished.
Google Seekers Online advertising