Google Struggling To Make Money On Mobile Devices

July 30th, 2013 by James

Despite spending a year on how does Google make more money on mobile advertisements, the company is still clueless on the best possible steps before it.

Google Struggling To Make Money On Mobile Devices

The financial report of the company revealed that second-quarter results analysts’ expectations for revenue and profit and the desktop search engine business of the company continues to slow and ad prices continue to fall as it struggles to make as much money on mobile devices.

Colin W. Gillis, a technology analyst at BGC Partners, wrote a haiku before the earnings announcement: “The results should be/ pretty as a picture to/ justify the stock.” But shares that fell 1 percent ahead of the report on July 18, fell another 4 percent in after-hours trading.

“One of the reasons why people like Google is you can look forward and see what they’re doing with Glass and laying fiber and driverless cars and Chrome, chasing after new revenue streams,” Gillis said. “But those are still pretty far away. Google’s core business is all about advertising and clicks, and the core business is absolutely maturing.” He added that mobile ads are inexpensive yet “overpriced because the conversion rates are so low.” “It’s still too hard to transact on a phone,” Gillis said.

“There used to be a discount you would get for going after traffic on tablets instead of desktops,” said Keith Wilson, vice president for agency products at the Search Agency. “Now that is disappearing. That is what is going to drive up CPC’s in the mobile space. This has been a catalyst for prioritizing mobile.”

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