Thursday, October 13, 2011

Google is on to something - again

Once again Google is showing the Internet is gaining traction as a source of revenue with it's own source of growth power. The global credit crunch is most likely causing a drop in overall advertising spending, but the continued migration to digital advertising is still giving great benefits to companies like Google, which announced their quarterly result today with revenue jumping 37% over last quarter to $7,5bn.

It is now about two years since Google started talking about its Mobile First strategy, and investors have been so what uncertain about the ability for mobile advertising to contribute significantly to the total revenue, and last year Google announced that the annualised renevue from mobile was about $1bn. According to Financial Times, the revenue from mobile has now climbed up to $2,5bn annualised. A 150% growth in one year.

This shows that Steve Jobs was right when he said that innovation should always stay ahead of the curve, so asking people what they want is really just making you look back. The high penetration of the Android OS for smartphones is also contributing to Google's strategy on acquiring data about our habits, which is so important for brining relevant advertising to the small screen. This is very important, as people will not tolerate too much irrelevant crap on their phones, which are considered to be more personal than both the TV and traditional computer screen.

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