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Google Struggles To Win The Mobile World
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Though the perception is that Google’s Android operating system is the most popular among the contemporary mobile users in terms of sale and usage, recent reports suggest that Google is struggling to make a place for itself in the mobile domain. These reports are of the opinion that Google is not taking effective steps to uproot the position of its chief competitor Apple. But there is still a ray of hope, say mobile market researchers as the revenue figures of the fourth quarter earnings were revealed in the middle of January. The Google stocks in the market saw a rise by 5 percent in the afterhours trading and therefore investors in Android development and smartphones running this operating system have recently experienced increased sales.
However, this does not mean that Google is in a safe position in the market. This is because of the fact that while the company is trying its best to make a name for itself in the mobile world, the main business of Google was earlier coming from desktop and laptop usage as a search engine; this usage pattern is also slowing down with a larger number of users shifting to the mobile base. Therefore, it will be apt to say that Google is slowly losing its catch in the desktop as well as the mobile domain.
When asked why such a case is occurring, mobile market analysts say that the CPC earnings of Google have fallen to an unexpected low. The CPC, also known as cost per click, is a phenomenon which advertisers follow to pay Google a particular sum of money each time a user clicks on ads featured in the search engine. The revenue earnings of the fourth quarter which was released in mid January showed a drastic 6 percent fall in the rates, and this phenomenon has been repeating for five quarters consecutively. Though the rate of decrease in the revenue was not as low this last quarter when compared to previous fiscal quarters, analysts are not too hopeful about Google’s future in the mobile world as existing users are also fast vanishing.
The most pertinent reason for Google’s recent losses is the fact that advertisers pay less when users click on mobile ads when compared to ads featured on machines such as desktops and laptops. Since an increasing number of people want to use the services of Google on their mobile devices at present, the revenue generation comes down further. So is the future of Google in mobile bleak? No, confirms mobile market analysts as the new mobile advertising campaigns launched by Google concerning the building of smartphones like the Nexus 4 has caught on with the target audience. According to the latest figures, users’ clicks on Google have already risen by 2 percent when compared with the figures recorded in the previous quarter.
In a statement made to the media, the chief executive of Google, Larry Page has said that the rapid change that is taking place in the mobile world has resulted in its poor performance over the past couple of months. However, he has also confirmed that the Google team is hopeful for a positive change in earnings in the near future; the rise in the rate of CPCs has led to the soaring of users’ spirits, confirms Larry Page.
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