Google’s mobile ads give stellar bump in profits

Google Share PriceGoogle’s share price shot up by 16.3% after they announced that profits climbed to $14.35 billion in three months when their second-quarter results were released.

The increased value in Google’s market cap from the share price rise means their market cap rose by some $40billion. When shares start trading today, after the PayPal spin off, eBay are likely to have a market cap of some $34billion… so Google added more than an whole eBay worth of value in just one day.

How did this happen? Well it’s all down to mobile and adverts on YouTube. Advertisers are starting to switch their budgets from desktop to invest in mobile ads and investors like what they’re seeing. Google has suffered in recent years as revenues from desktop adverts declined as mobile usage increased, but they’re bucking the trend with Product Listing Ads which do appear prominently on mobile.

What should this tell you? Well if you’re still using Adwords and haven’t optimised your paid search for mobile, not just for Google but all platforms, then this should be a priority for your business. Also it’s not just paid search, the mobile induced bump in Google’s revenues and subsequent valuation should be a strong indicator that you should revisit your website and marketplace listings and ensure that they’re totally mobile friendly too.

RELATED POSTS..

eCom Insights 2025 Returns to Shape the Future of Ecommerce

eCom Insights 2025 Returns to Shape the Future of Ecommerce

45% of customers use AI tools as traditional search declines

45% of customers use AI tools as traditional search declines

Identifying key priorities for an Omnichannel Business

Identifying key priorities for an Omnichannel Business

OnBuy to scale internationally with Google Cloud OnBuy 2024 EU expansion and 2025 North America

OnBuy to scale internationally with Google Cloud

Brits admit to shopping at work on mobile

Brits admit to shopping at work on mobile

Featured in this article from the ChannelX Guide – companies that can help you grow and manage your business.

Latest

Take a look through a selection of the latest articles on ChannelX

Register for Newsletter

Receive 5 newsletters per week

Gain access to all research

Be notified of upcoming events and webinars