The Continuing Success of Google
November 3, 2013
Google’s emphasis on advertising is paying off wonderfully. Is Google still a search company? Business Insider declares, “This One Statistic Explains Why Google’s Stock Exploded Through $1,000 a Share.” Reporter Aaron Taube is taken with a forecast (PDF) from Morgan Stanley that predicts Google will go on to capture one full point of global advertising market share each year. He notes that this market includes all ad revenue from around the world, including television. The article emphasizes:
“Keep in mind: Google currently owns about 11.7% of the global advertising market (Magna Global estimates the market to be at $495 billion [PDF] annually, and 97% of Google’s $14.98 billion in quarterly revenues come from advertising). This means that by Morgan Stanley’s calculations, the company is going to increase its already sizeable market share by more than 25% over the next three years — and it will still have only about 15% of the business.”
The Morgan Stanley report points out that Google’s rise is assisted by its growing success on mobile devices. Taube adds, citing this article from eMarketer, that Google already captures half of all mobile internet ad revenue. Will it soon seize the vast majority? The report goes on to explain that it expects Google will continue to grow thanks to its investments in advertiser-friendly features like “enhanced” campaigns and improved measurement tools. The company indeed seems poised to continue on its wildly successful path.
Cynthia Murrell, November 03, 2013
Sponsored by ArnoldIT.com, developer of Augmentext
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