Tag: google mobile ads

In terms of investor optimism, the search engine giant appears to have a massive advantage over Apple.

Google has earned its way into a very impressive position ahead of Apple in terms of optimism expressed by investors, as its mobile marketing and other strategies have brought its shares up above $831 and building, while Apples are hanging low at around 426.18.

Every passing day seems to be looking better for Google due to the strategies that are keeping its future bright.

Bloomberg compiled data has revealed that the shares at Google are currently trading at a price that is 25 times its current profit. This is considerably better than Apple, which has a current price to earnings ratio that is under 10. The primary difference between the successes of these two companies is being credited to the mobile marketing at the search engine king.

Lucrative prospects for mobile marketing are making a considerable positive impact on Google.

The mobile marketing there is looking so positive that investors are clearly willing to pay more for the company’s shares than every dollar of earnings that it brings in. This is far superior to the results being seen by Apple.

At the moment, Google is estimated to hold over 40 percent of the total online American online advertising marketplace. Forecasts are suggesting that it will only continue to grow its hold on the $37.3 billion that is being spent for this purpose by businesses every year, in order to better communicate with their audiences.

Google has also just entered into an important new partnership with Samsung Electronics Co., which has boosted its share in smartphone and tablet software. This has only built its competitive threat against Apple, as investors impatiently await the next release from that company, to see if it will be any more successful than the last two releases which have generated considerable consumer disappointment.

According to B Riley & Co. analyst, Sameet Sinha, “There’s only one company benefiting from all the growth areas of the Internet — be it video, mobile, local, social, display advertising.” Sinha added that “Apple has just done well in devices, nothing else.” With Google asserting itself in the mobile marketing sphere, this could prove dangerous to Apple unless its next release is spectacular.

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

Google has invested a great 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.