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Suddenly, Google Looks Shaky [Reports Lower than Expected Revenue Growth]
Business Insider ^ | 10/20/2014 | Nicholas Carlson

Posted on 10/20/2014 1:14:41 PM PDT by SeekAndFind

Last week, Google reported slower-than-expected revenue growth during the third quarter.

Investors punished the company with a stock sell-off, and now Google shares are trading at $511.17, well below a 52-week high of $604.83.

In a story on the disappointing earnings, BI's Jillian D'Onfro pinpointed Google's problem: its big business, search advertising, isn't growing as fast as it used to. In fact, it hasn't grown so slowly since six years ago.

To be very specific: People didn't click on Google search ads as much as everyone thought they would during the quarter.

"Growth in paid clicks didn't accelerate as much as analysts expected it to: 17% year-over-year versus expectations of 22% year-over-year," wrote D'Onfro.

Here are three reasons that's happening.

Reason #1: Google search is the best money-making business on the Web, but the Web is slowly becoming irrelevant thanks to mobile.

Here are two charts that illustrate this point. We first saw them in a post by Andreessen Horowitz partner Chris Dixon.

The first chart shows what you already know, that mobile users surpassed desktop users this year:

desktop versus mobile users in 2014

The second chart shows that, increasingly, mobile users prefer to connect to the internet via apps rather than the mobile web.

(Excerpt) Read more at businessinsider.com ...


TOPICS: Business/Economy; Computers/Internet
KEYWORDS: google; revenues

1 posted on 10/20/2014 1:14:41 PM PDT by SeekAndFind
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To: SeekAndFind
AdBlock Plus for your browser speeds up browsing and screws Google. What's not to like?


2 posted on 10/20/2014 1:40:14 PM PDT by RightGeek (FUBO and the donkey you rode in on)
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To: RightGeek

Adblock Edge, if you want to be a real stickler. It’s the same as Adblock Plus except it doesn’t include a whitelist for Google’s ads. Or you could just untick the “allow non-intrusive ads” checkbox in Adblock Plus. Whatever.

Google probably banned ad blockers from the Play Store as a way to combat the trend toward mobile devices that this article mentions. Part of me wonders how long it will be before they vanish from the Chrome Web Store as well.


3 posted on 10/20/2014 1:48:51 PM PDT by Cato in PA (Resist!)
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To: Cato in PA
What is wrong with Google? Have you ever used their free tools like Ananlytics or visited their Webmaster Tools site?

Name another one that works as well for free.

4 posted on 10/20/2014 2:32:00 PM PDT by JSteff (It was ALL about SCOTUS.. We are DOOMED for several generations. . Who cares? Dem's did and voted!)
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To: JSteff

free

That might be why its shaky?


5 posted on 10/20/2014 2:41:12 PM PDT by GeronL (Vote for Conservatives not for Republicans)
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