Thursday, January 30, 2014

Google is growing thanks to high advertising revenue - THE WORLD

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Google employees in New York., you can find out about increasing sales enjoy their company - but reveal the quarterly results of the search engine giant also weaknesses

Google is growing thanks to high advertising revenue

Google surpasses the expectations of analysts – but is the earnings per share in the fourth quarter of 2013, well below the predictions. Motorola has apparently sold just in time.

Google surpasses the expectations of analysts – but is the earnings per share in the fourth quarter of 2013, well below the predictions. Motorola has apparently sold just in time.

With its financial results for the fourth quarter of 2013, Google provides 24 hours of the announcement of the deal, the justification for the sale of its mobile subsidiary Motorola in China’s Hardware Lenovo Group by: by almost a quarter of the sales of mobile-Bauer has collapsed compared to the prior-year quarter, they contribute to a rapidly growing loss of now $ 384 million per quarter to the fact that Google with its latest quarterly figures missed analysts’ forecasts scarce.

Although the Group generated sales growth of 17 percent to $ 16.86 billion per quarter expectations, but profit per share of $ 12.01 was significantly among the predictions.

Google proves with the latest quarterly figures, especially the importance of the advertising business for the Group: A mere $ 1.6 billion of sales do not result from the advertising business, but from the area of ??hardware and content.

Thus, the area was able to grow by 100 percent compared to the same quarter last year, Google’s CFO Patrick Pichette said: “The growth in sales was primarily through content and app sales in the Play Store driven “, even Google’s new TV stick Chrome Cast’ve helped.

Large dependence on the advertising market

But Pichette can not deny: 90 percent of the revenue for the quarter resulting from advertising, Google is extremely dependent on the advertising market. At the same time Google must admit that the cost per click – so the price for a successful ad on Google – have dropped significantly once again, alone in the last quarter by 11 percent

.

Google loses, therefore, the constant battle against the price decline in its core business – and still gaining in sales, since new forms of advertising the price decline per ad offset: 31 percent more paid clicks of its users as in the prior year quarter, Google.

This amazing growth, the Group also owes the success of the 2012 introduced “Product Listing Ads” (PLAs), advertisements with images of individual products that are listed next to the search results .

According to analyzes of the U.S. advertising service provider Marin Software, the demand of commercial customers explodes after this form of ads, Google’s U.S. advertisers tripled in the past year their budgets for the PLAs.

was

Motorola sales made on time

currently leads Google’s new display form in the international market, in the past quarter, Google has started, according to Chief Business Officer Nikesh Arora PLAs in eight countries.

Arora also announced other new forms of advertising: In its map service Google Maps will continue to integrate more local ads on mobile devices, the Group Facebooks wants success in the field of app-install advertising imitate.

the sale of Motorola commented on the Google-Manager in its analyst call just barely: The deal with Lenovo was “a win for the Android ecosystem.” Given the growing losses here just in time Google has pulled the ripcord and sold billions loss.

How the deal is reflected in the books, it becomes clear only in the coming quarters. But it is already clear: Google’s first attempt to emancipate themselves from Werbegsch√§ft is, for the time being failed

.

New core of Google’s hardware division is the just acquired startup Nest, which will continue to play with Google’s resources in the back on an international role. However, whether nest can alleviate alone Google’s dependence on the advertising market in the medium term, is doubtful in light of this most recent ones.

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