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Google admits mobile advertisements impacting revenue growth

| November 5, 2012

 

Google reports that mobile ads are causing a deceleration in revenue growth

Google has invested a grea\Mobile Advertisments Growth t deal of money into mobile advertisements. With the number of consumers with smart phones and other mobile devices on the rise, the company had expected to see a sharp increase in revenue growth through its mobile marketing initiatives. Google has recently filed a 10-Q report with the U.S. Securities and Exchange Commission noting that mobile advertising is, in fact, having a deceleration effect on its revenue growth.

Mobile advertisements are cutting into desktop business

According to the filing, Google has been seeing a decline in revenue growth for some time due to multiple factors, of which mobile advertisements are a significant part. The company expects to continue seeing this trend into the future, if it does not take action to reverse the effects and put more momentum behind revenue growth. Google currently has an $8 billion annual run-rate on mobile advertisements, which has significantly cut into the company’s desktop business, thus causing a decline in revenues.

Focus on mobile platforms cause shrink in desktop business

Despite Google’s powerful presence in the mobile space, the company is still heavily involved in traditional desktop computing. Much of its business and traffic comes from desktop computers or other stationary systems. By shifting focus toward mobile advertisements, Google has seen engagement in its desktop business decline somewhat. Google notes that such trends are expected in the advent of a digital economy, but not entirely welcome. With advertisers more interested in mobile platforms over static, Google may be hard-pressed to find a solution to its revenue growth problem.

Google may see market backlash from slowing revenue growth

Google is one of the leading names in mobile commerce, social networking, and technology currently. The company has its hands in various industries and has a multitude of projects underway that could revolutionize these industries. Nonetheless, the company is still susceptible to changes in the advertising market and the interests of consumers. By admitting that mobile advertisements are causing a deceleration in revenue growth, Google may soon see some backlash from the stock market.

Commerce Commission of New Zealand mobilizes to keep track of mobile pricing

| November 5, 2012

 

The Commerce Commission keeps tabs on pricing in wake of Vodafone deal

The Commerce Commission, an ageNew Zealand Mobile Pricingncy of the New Zealand government, has mobilized to keep tabs on pricing for calls between fixed line platforms and mobile phones. The move comes in the wake of a deal between Vodafone New Zealand and TelstraClear, in which Vodafone acquired the latter party. The Commerce Commission is poised to keep an eye on the pricing schemes coming from Vodafone, as well as other telecommunications companies operating in the country. The agency has already imposed lower prices on calls in several mobile networks.

Regulator preparing to keep track of mobile commerce

Though the regulator is poised to take action if it detects some form of foul-play in terms of call pricing, the Commerce Commission is also keeping an eye on the growth of mobile commerce within the country. Mobile devices are becoming more common with consumers. As such, more people are being exposed to the concept of mobile commerce, whereby their mobile device is used to make payments for goods and services.

Youth of mobile commerce industry holds potential for malicious activity

Typically, mobile commerce platforms do not make money off of the applications they provide to consumers. Instead, companies charge a fee for each transaction processed through t he platform. Because mobile commerce is still a relatively young industry, there is potential for some companies to exploit consumers. It is this potential for malicious activity that has the Commerce Commission on its toes and ready to crack down on foul-play it may see.

Vodafone may be gearing up to push mobile commerce in New Zealand

Vodafone New Zealand is one of the largest mobile network operators in the country and is part of the larger Vodafone network. Vodafone has shown interest in mobile commerce in countries like Spain, but seems to have limited this interest to the European market. With TelstraClear now a part of the Vodafone network, the company may be gearing up for a push to bring mobile commerce to New Zealand, but such plans have not yet been set in stone.