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Experts predict Google Search to Expire, Mobile Apps to Outpace

Internet giant Google is currently facing a big challenge as its market earnings continue to plunge in the past two days, with its profit losses being driven by debility in advertising revenue.

Moments after its third-quarter earnings report was inadvertently published earlier than scheduled on Thursday, various speculations about Google’s future expiration as the world’s lead Internet search engine quickly began to blowout.

The early release of its earnings report for the third quarter market also contributes to Google’s recent revenue decline, as investors fared to dump their stock and drive the shares into a drop.

The Internet giant’s latest earnings report indicates a huge drop in its market value. Google’s stock value this week has posted a terrible 10-percent plunge, eliminating more than $24 billion from the company’s market value. Its third-quarter earnings report also posted a 20 percent deficit in profits on the same quarter last year.

Given such a deteriorating market output, analysts accordingly warn of the company’s future demise, especially if the search engine fails to enhance its mobile advertising. Analysts put some of the blames on the latest mobile applications’ existence.

Experts said consumers are gradually drifting to mobile apps these days. Advertisers are also starting to switch to mobile advertising, as they charge lesser than the usual ads via desktop or laptop computers. Analysts further illuminated that the platform used in mobile advertising is not as effective as the typical computers therefore advertisers are not willing to pay much for it.

Eric Jackson, founder and managing member of a technology-focused hedge fund called Ironfire Capital, has said on CNBC Friday that it is not impossible for Google to fade in five to eight years. If its market performance continues to decline, then its current reputation as the leading search engine could also end soon.

According to the company’s earnings report, the profit losses are caused by flagging ads revenue, in which the amount paid by advertisers to Google’s click-per-click (CPC) has decreased by 15 percent. Analysts also blamed Google’s poor performance on its $12.5 billion acquisition of Motorola, which is apparently being fraught and left behind by its more stylish rivals.

Mr. Jackson predicts that Google’s dominance will eventually weaken as other tech firms like Apple attempt to outpace the Internet giant, in attracting advertisers to their mobile apps. This is not only hurting Google but also other Internet companies that are relying on search ads for their revenues.

But according to a data from eMarketer, despite the declining profits, Google continues to take the lead in online advertising, amassing a total share of 74.5 percent, from the US search ad market. Meanwhile, Apple’s shares drop by approximately 2.8 percent in last Friday’s market exchange.

Apple is the only tech firm larger than Google in market assessment.

Aside from Google, social media network Facebook also posted a drop on its share by 0.5 percent on Friday’s trading. Facebook is also among the techno firms, which stock heavily depends on advertising revenues.

The significant drop in revenue acquired by Google recently, is indeed appalling. Nevertheless, it denotes a fact that more searches are now being performed outside Google, as more and more people opt to search through apps instead of Google search. It is likewise a cue for the firm to find a better means to boost their ads revenue, in Google search and Google apps as well.

Source: Daily Mail