The latest results announced by Google again leave the market analysts worried. While revenues have grown 21% in annual growth (reaching $ 11 billion in the second quarter), much of this volume come from search ads, and the amount of paid clicks has grown 42% (two times longer than revenue), cost per click is still in free fall: 16% in the second quarter versus 12% in the previous quarter.
Blame competition with Facebook? According to Google, no. The downward trend in cost per click is caused by the market for mobile advertising, growing at a pace much more intense than that of advertising on desktops, thanks to increased web access via smartphones and tablets. As the price of mobile advertising is only a fraction of traditional advertising aired on websites, it is dropping the average revenue per user and profit margin. Not only on Google, like Facebook and Linkedin …
To increase revenues with mobile advertising, 1 million of AdWords advertisers are beginning to have access to 300,000 applications in the mobile network AdMob. Google also has launched a series of innovations, as an option to click-to-call (which generates 15 million calls every month).
The expectation, according to senior vice president and director of Business Nikesh Arora, is that the price rise of mobile advertising, as in the past with the price of search ads. And this process may have already started.
Google also does not believe that they are taking mobile search users search on the desktop. “We believe that mobile search are mostly incremental,” said Senior Vice President of Advertising, Susan Wojcicki. But something that is acknowledged that the company is still analyzing.