How long does Google live?

    Google's capitalization for 2014 amounted to 382 billion dollars, and profit for 2014 - 14.4 billion. 62.74% of searches go through the Google search engine. The Android operating system is installed on 47.5% of smartphones in the world. But Farhad Manju is confident that the company's future is uncertain. Why?


    Technological giants, as a rule, do not leave the market instantly. This is preceded by a slow fading with attempts to restore the part of the business that made the company rich, or to enter new markets with innovative technologies. Companies are drowning slowly, as is the case with the Hewlett-Packard, which is being cut in two. Even Microsoft, which remains one of the largest in the world, could not adapt to new markets and overcome competition with iOS and Android devices. Although trying.

    It seems that Google’s wealth is eternal, that the corporation will be able to deliver new technologies for as long as they need, which, with increased interest in them, will not generate profit - as it was with Google Glass. 90% of Google’s revenue is advertising, most of which is search engine advertising. But smartphones overshadowed laptops and personal computers, becoming the world's most popular computer devices! So Facebook, Google’s main rival in the fight for advertisers money, can overtake the search engine.

    In 2000, Google began displaying text ads in search engine results. Technology has become the most successful form of targeted advertising, and in 2014 Google sold this advertising for $ 45 billion. The entire advertising market last year amounted to 550 billion dollars, so the result of Google does not look so impressive. An important part of the market is brand advertising, which we see in magazines and on television, this advertising affects emotions. But Google is not yet able to influence our feelings in the SERP. On the other hand, the money that leaks from television to the Internet can go to Youtube .

    The problem with Google is that its path in advertising can be repeated. In just five years, Facebookbuilt a huge infrastructure for advertising and new ways to measure its effectiveness. In 2014, Facebook sold advertising for 11.5 billion dollars, which is 65% more than in 2013. Nothing prevents Pinterst and Snapchat from reaching the same heights.

    Google is trying to cope with competition by increasing the cost of developing and implementing new technologies. In the fourth quarter of 2014, the company allocated $ 2.8 billion for these purposes, and in 2013 this figure amounted to 2.1 billion in the same quarter. Larry Page took responsibility for the products on the shoulders of Sundar Pichai to concentrate on strategic issues himself.

    Only time will tell how long Google will hold on to its share of the advertising market, and how profitable new technologies like unmanned taxis anda renewed Google Glass project.

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