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Google Inc. Message Board

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  • adonis9000 adonis9000 Jan 18, 2013 2:22 PM Flag

    GOOG's cost per click down 4 quarters in a row due to mobile (iOS, Android)

    The more Android share increases, the more goog's cost per click decreases because there are just fewer eyeballs to view goog's cash-cow ads on pc's. Android phone buyers just bought them because they were the cheapest available. These buyers are not interested in clicking on any of google's ads and spending money online. To them, Android phones are nothing more than feature phones. Incredibly, Android's 72% market share is still mostly cheap Android Gingerbread 2.3 phones, which still far outsell Android Jellybean phones at all the cheap phone vendors like Boost Mobile and Virgin Mobile. These low-income people never even clicked on goog's ads on traditional desktops, so they can't be expected to click on them on Android phones with smaller screens.

    Sentiment: Strong Sell

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    • "The more Android share increases, the more goog's cost per click decreases because there are just fewer eyeballs to view goog's cash-cow ads on pc's."

      Cost per click would remain the same with fewer click throughs. Mobile or desktop, Google makes revenue

      " These low-income people never even clicked on goog's ads on traditional desktops, so they can't be expected to click on them on Android phones with smaller screens."

      So, no effect on Google income. Is there or is there not going to be a huge movement from desktop to mobile? If there is, Google will make the most with their mobile search engine and pop up ads.

      • 1 Reply to therulersupreme
      • Goog tanked $80 in one day after the last earnings report after its cost per click fell 15% due to mobile and it missed its EPS estimate by 17%. Go back and read about goog's last earnings report and the 15% decline in cost per click. Goog's cost per click started to decline 4 quarters ago and has fallen every quarter since. It's nonsense to suggest goog makes as much from mobile ads as traditional desktop ads. Goog makes anywhere from 60-85% less depending on which mobile device is displaying the ads. Mobile devices's screens are just smaller than PC screens. As for any money goog does make on mobile, it came out during the trial they only made $500 mil. so far total profit on mobile ads after investing $30 bil. on developing Android and related services. As for that $500 mil., iOS revenues exceed Android revenues 4-to-1. Android is a money hole. The main beneficiary is Samsung whose market cap has risen 6-fold while goog's price is the same as it was 5 years ago. Samsung's market cap will exceed goog's this year, by the way. Goog's jealous so it will come out with the x-phone and x-tablet later this year and not give Samsung the latest Android updates. Samsung will retaliate by bringing out Tizen phones this year. Samsung Galaxy S3's and Note II's are dying off due to Sudden Death Syndrome just in time. Samsung and Goog both want to be like Apple, control both hardware and software, but they will both fail.

        Sentiment: Strong Sell

 
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