This three big reasons to explain why the sudden Google “shake and crumble
[Abstract] Google stock value now down to $511, and the highest value was $604.
Last week, Google (micro-blog) announced in its third quarter earnings, income growth lower than expected. By selling shares to investors Google penalize, now Google stock value fell to $511.17, and the highest value was $604.85. It Google disappointing earnings, BI columnist Gillian Doflo (Jillian D’Onfro) analysis Google problems: the important business of search advertising Google — as in the past the rapid growth. In fact, since it began 6 years ago, Google search advertising business growth began to slow.
Obviously, people no longer like before more clicks Google search advertising. Doflo wrote: “Google search advertising paid click growth not as analysts expect high, its annual growth rate is only 17%, but analysts predict 22%.” Doflo analysis of the Google suddenly fall into three major reasons for the crumbling state:
1 Google search is a web page on the most profitable business, but with the rise of mobile technology, web search is gradually squeezed.
Venture capital firm Andreessen Horowitz partner Chris Dickson (Chris Dixon) to produce two icon, can prove this point of view. The first chart shows, 2014 mobile users have more than desktop computer users.
2 people are more willing to go directly to the Amazon site search to purchase products.
2 years ago, we have interviewed a number of Google executives, found that poses a great threat to their opponent is not Facebook or Microsoft, but amazon. Google is a search engine company, but the people in online shopping before the search to make money. This kind of business accounted for 20% of the total Google search search, and these search and advertising business related majority.
Make the Googlers worry that consumers are increasingly Google, skip, but directly to the Amazon site search, or through the Amazon apps for mobile search, looking for to buy products. Have data to prove this trend is true. According to the global Internet information service provider ComScore data show that in 2012 73% growth in the Amazon search.
In fact, Google search growth fell and the tedious operation is also related to. First you have to open the mobile web browser, Google search “bicycle gloves”, the analysis of some text links, click on one of them into a business shop’s product page, click add it into your shopping cart, enter your credit card information, enter your address information, choose your favorite delivery service etc..
While Amazon search just open the Amazon app on your mobile phone, search for “bicycle gloves”, the click of a button you can use your credit card to achieve the purchase, and the product can be sent to you free of charge to the commonly used.
3 Google in the mobile space the most profitable industry lags behind, currency flow.
In the second quarter, Facebook in mobile advertising revenues of $1800000000, the same period last year 151%. Twitter in the same quarter revenue of $225000000 for mobile. Twitter and Facebook are moving through the application of the “flow” service to sell ads to make money. In fact, Google is also selling mobile ads, but it is not their own “flow” to sell advertising service.
At the same time, Facebook and Twitter always keep adding more “flow” to sell advertising service. Facebook bought Instagram and WhatsApp, while Twitter has bought Vine. Facebook and Twitter are ads themselves “flow” service, help other application manufacturers sell advertising.
Reminiscent of Google to its former glory, Google also through the contents of the product search results to sell their ads to make money. With these advertising the sale of technology spread to the Internet, access to huge profits. Perhaps Google’s growth is slowing, because it did not continue our tradition in the mobile space, while Facebook and Twitter have inherited the tradition of Google.
Google may have slowed the growth of Google CEO Larry Paige (Larry Page) and the influencing factors, he looks at the distant future, rather than the current. In the past 2 years, billions of dollars of investment in R & D page automatic driving vehicle, thermostat, robotics and other fields, and these investment has not become a real industry, maybe one day in the future they will help Google to reproduce the brilliant