How long is Google left to live?
Google's capitalization for 2014 amounted to $ 382 billion, and profit for 2014 - $ 14.4 billion. Through the Google search engine passes 62.74% of requests. The Android operating system is installed on 47.5% of the world's smartphones. But Farhad Manju is sure that the future of the company is foggy. Why?
Technological giants, as a rule, do not leave the market instantly. This is preceded by a slow decline with attempts to restore that part of the business that has made the company rich, or to enter new markets with innovative technologies. Companies are drowning slowly, as happens with Hewlett-Packard, which is sawn in two. Even Microsoft, which remains one of the largest in the world, could not adjust to new markets and overcome competition with iOS and Android devices. Although trying.
It seems that Google’s wealth is forever, that a corporation will be able to produce new technologies for as long as they want, which, with an increased interest in them, do not generate profits - as was the case with Google Glass. 90% of Google’s revenue is advertising, most of which is search engine advertising. But smartphones have eclipsed laptops and personal computers, becoming the most popular computer devices in the world! So Facebook, the main rival of Google in the fight for advertisers money, can overtake the search engine.
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In 2000, Google began to display text ads in search engine results. Technology has become the most successful form of targeted advertising, and in 2014 Google sold this ad for $ 45 billion. The entire advertising market over the past year amounted to 550 billion dollars, so the result of Google does not look so impressive. An important part of the market is advertising brands, which we see in magazines and on TV, this advertising affects emotions. And Google is not able to influence our feelings in the issue. On the other hand, the money that leaks from television to the Internet can get on Youtube .
The problem with Google is that its advertising path can be repeated. In just five years, Facebook has built a huge advertising infrastructure 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 dollars for these purposes, and in 2013 this figure was 2.1 billion in the same quarter. Larry Page placed the responsibility for the products on Sundar Pichai’s shoulders to concentrate on strategic issues.
Only time will tell how long Google will last in its share of the advertising market, and how profitable will be the new technologies like unmanned taxis and the resumed Google Glass project.
Technological giants, as a rule, do not leave the market instantly. This is preceded by a slow decline with attempts to restore that part of the business that has made the company rich, or to enter new markets with innovative technologies. Companies are drowning slowly, as happens with Hewlett-Packard, which is sawn in two. Even Microsoft, which remains one of the largest in the world, could not adjust to new markets and overcome competition with iOS and Android devices. Although trying.
It seems that Google’s wealth is forever, that a corporation will be able to produce new technologies for as long as they want, which, with an increased interest in them, do not generate profits - as was the case with Google Glass. 90% of Google’s revenue is advertising, most of which is search engine advertising. But smartphones have eclipsed laptops and personal computers, becoming the most popular computer devices in the world! So Facebook, the main rival of Google in the fight for advertisers money, can overtake the search engine.
')
In 2000, Google began to display text ads in search engine results. Technology has become the most successful form of targeted advertising, and in 2014 Google sold this ad for $ 45 billion. The entire advertising market over the past year amounted to 550 billion dollars, so the result of Google does not look so impressive. An important part of the market is advertising brands, which we see in magazines and on TV, this advertising affects emotions. And Google is not able to influence our feelings in the issue. On the other hand, the money that leaks from television to the Internet can get on Youtube .
The problem with Google is that its advertising path can be repeated. In just five years, Facebook has built a huge advertising infrastructure 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 dollars for these purposes, and in 2013 this figure was 2.1 billion in the same quarter. Larry Page placed the responsibility for the products on Sundar Pichai’s shoulders to concentrate on strategic issues.
Only time will tell how long Google will last in its share of the advertising market, and how profitable will be the new technologies like unmanned taxis and the resumed Google Glass project.
Source: https://habr.com/ru/post/285928/
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