Google continues to make money - thanks to mobile phones and YouTube

Although Google has traditionally pleased investors with consistent financial growth for quite some time, the company has not met Wall Street's expectations in the last two quarters. But according to the results of the closure of the 2nd quarter of 2015she was able to achieve significant success in rectifying this situation. Revenue is reported at $ 17.7 billion in the past quarter, representing an increase of 11 percent compared to last year and 3 percent compared to the first quarter of 2015. This significantly exceeded Wall Street expectations, and as a result, Google stock quotes rose 11 percent at the close of trading. What contributed to this success? According to Chief Financial Officer Ruth Porat, this was due to success in the mobile sector, as well as the success of the YouTube project.



Although Google does not intend to disclose specific figures, Pore said that “the gap between the mobile and desktop sectors continues to narrow” when it comes to money from advertising. Apparently, a particularly strong surge has occurred in the field of mobile search, which makes a significant contribution to the total revenue from advertising. Omid Kordestani, Director General for Development, commenting on financial performance, said that "in 10 countries we received more search queries from mobile devices than from computers." That's why the company is devoting even more resources to improving its mobile solutions. He said that about 30 percent of mobile search queries were tied to a specific location - people want to know what is happening next to them and where the nearest gas station is. “When people search from mobile phones,

But the matter is not only in the search. Google has also invested in other key mobile businesses, especially where people are less likely to go directly to google.com. Cordestani claims that their efforts in projects such as Google Photos, Here and Now, and Android Pay have become Google’s global presence in the mobile world. He also noted the importance of strong interconnectedness of applications when users install new applications through links in others that are already installed. This increases overall traffic. Pore ​​said that Google Play "continues to grow at an impressive pace" and becomes "the fastest growing mobile gaming platform."

What is particularly impressive is that ad revenue on YouTube has also grown significantly, especially on mobile devices. The TrueView ad format - above all all the pre-displayed ads that you see before YouTube clips - has grown significantly recently. Pora said YouTube has grown at an accelerating pace of 16 percent, while "watch time from mobile devices has more than doubled." The cost per click has decreased, but this is normal, because the number of clicks in the above TrueView views has increased. The new TrueView function, when product and price information is automatically added to video ads, opens up opportunities for further growth.

Indeed, the number of advertisers using ads on YouTube grew by 40 percent, and they began to spend on average 60 percent more money. Cordestani said that the average watch time on YouTube was also more than 40 minutes, and that an audience of 18 to 49 years of age watching YouTube videos on their mobile devices more than video on cable TV networks. He claims that YouTube is also a great place for content creators - the number of channels making six-digit numbers has grown by 50 percent compared to the same period last year.

As for other projects of Google - Nest, Fiber and Google Life Sciences - they are currently under "close attention" and are considered more likely as longer-term sources of income. This means that they are not really making any money right now, but there is such potential in the future.

Sources:
www.engadget.com/2015/07/16/google-q2-2015