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Google to Die, Says Experts
Written by Pace LattinOctober 21, 2012 # 5:31 pm # Marketing Insights, Specials # 15 Comments
Every week or so, someone goes out on a limb and says some part of the online advertising industry is about to die, or worse, has already died. Of course, the news is never as bad, as lets say Kim Kardashian dying, but it’s always some alarmist viewpoint that some part of the online industry is in dire trouble. Most recently people have been starting to claim that Google is about to die, if not soon, in the future. Eric Jackson, the founder of Ironfire capital got on TV last week and exclaimed that Google could find itself similar to Yahoo, and on the way out.
The basis of this story was because of Google’s 10% stock loss, which wiped out an amazing $24 Billion in worth – after the third quarter earnings revealed a 20% drop in profits. According to experts, this was purely because of a huge decline in advertising revenue, which had decreased 15% from the previous year.
The reason for the loss in revenue? Mobile. Every report that came out about Google seemed to point to the fact that Mobile is dominating the space, more and more advertisers moving to mobile. What bothers the analysts seems to be a strange idea that this will hurt Google long term, because they are not part of the mobile revolution.
Analysts point that because more and more people are using a mobile device as their main device, and turning to apps for search instead of Google.com, that less and less purchases are being made via these apps instead of via search. Basically, what if people stop using search as much for products, and start just going directly to their favorite store more often, using Amazon’s, Ebay and other companies’ apps first. Additionally, there is something to be said with those who use iPhones which integrate search with apps like Yelp instead of Google first. This is a very, very interesting viewpoint that should be considered.
Whether or not Google is in trouble, is to be seen. It’s clear that mobile marketing, mobile apps are going to slowly dominate more of the market, and that Google online search will be used less. However, the idea that Google, which has a huge share of the mobile market through Android is in enormous trouble because of Mobile growth, is just ridiculous. Google was one of the first companies to embrace mobile and still dominates the search market online. Also, as part of the release, it showed that Google went from 2.5B in mobile revenue, and at its current rate will be at $8B for the total of this year. Not exactly a company with a “mobile problem.”
Mobile will change the equation, but search is a part of our lives and part of how most of us interact. Eventually more and more advertisers will turn to search ads on mobile, and Google will remain a significant part of this market.
Written by Pace Lattin
Pace Lattin is one of the top experts in interactive advertising, affiliate marketing. Pace Lattin is known for his dedication to ethics in marketing, and focus on compliance and fraud in the industry, and has written numerous articles for publications from MediaPost, ClickZ, ADOTAS and his own blogs.
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Yeah, I’m pretty sure Google will adapt, too. But it’s a (very) nice thought and interesting perspective.
Harmony Major recently posted..Website Traffic for ANY Business with Local SEO: How-To & First Steps
Google has the brain power to adapt to change. They will.
Google will die? Don’t make me laugh, they are a multi-billion dollar company and if they need to adapt they will. They are an agile company, albeit one of the largest agile companies.
Agreed.
pacelattin recently posted..Social Media Must: Quality over Quanity
Agile – Smagile. The only reason google is alive is cos its buying growth.
Google needs to get a better browser for mobile – turn chrome into a opera mobile, ucweb, bolt kinda thingy.
Data compression or better yet buy opera and call it googleOperA .
Emmanuel recently posted..Counter Strike 1.6 Free Download The Full Version
I would appreciate more honest headlines, the hype and BS gets me here pace, but I’d be more likely to keep returning if you go back to non hype titles. Google is indeed on the way out, with CPA and Commission based structures converting at pennies on the dollar in comparison to paying for our precious google clicks.
Imagine how many optouts I’d see if I promised people 80% returns, and showed statistics that show a 3% loss… Long story short, I’m 1 misleading title away from opting out.
I’ve always weighed in when it matters, but PI is making it not matter anymore.
Enough hype.
Steffan, this was a response to studies that came out in mainstream media claiming Google is on the way out, that it could be in trouble. I felt that was bullshit and called it like I saw it. Read the link, several experts saying Google will die because of mobile… which I disagree.
pacelattin recently posted..Social Media Must: Quality over Quanity
Pace,
Have you seen the recent New York Times article on Google AdWords? http://www.nytimes.com/2012/10/18/business/smallbusiness/as-pay-per-click-ad-costs-rise-small-businesses-search-for-alternatives.html?_r=0
Like the article points out, Google AdWords is part of an overall strategy, content building being preferred but PPC budgets will continue, albeit smaller and more targeted.
Kyle Wentworth recently posted..Earn Cash for Groceries with Jingit
I’m not disagreeing, nor am I the one who says Google on the way out…
Google will never loose .. what are these people talking about? .. They will dominate mobile advertising as well pretty soon .. These guys are not easy to outsmart
Yes, and Microsoft is going to die too… LOL! Google ‘became’ by changing… and will continue to ‘be’ by the same.
Antonio Easter recently posted..What is CPA Marketing – FINALLY FREE…
Google will still survive many years from now, but the end started
from the moment when they killed so many small business…
Andrew Sorensen recently posted..Viral Image Curator Pro Must-Have Image Tool Turbo-Charges Your Income, Sends Flood of Viral Traffic, Saves YOU Hours Daily
Although the death of Google is a bit far-reaching, there is or should be concern over the amount of investment that we have in Google via our pension plans and IRA plans. Nearly every major company has invested untolds millions into the ‘cloud’, and clouds by the way do evaporate or disappear.
Kyle Wentworth recently posted..Enter to Win: Rosetta Stone Autumn Escape Sweepstakes
Boy that is a very nice thought,but sadly to say quite a reach. When you are on top there is only one place you can go! I predict that the FTC will give them some pain that will shake there foundation very soon.
Google right now is testing in other country’s about decreasing the organic search greatly in order to increase ad’s on the page and pushing the organic search below the fold.
There new idea with the reason for strict quality score is hopes of one day that everything that shows up when searched is nothing but there ads?
TBone recently posted..New Economy Franchising Review & Bonus x 2
I don’t think that is going to happen soon. If that happened it would be interesting how people will adapt to it…