Google expects to make $8 billion this year from its mobile business
Santa Clara, CA, United States (4E) – During a conference call with analysts, Google chief executive officer Larry Page announced that the search giant is expected to make an estimated $8 billion this year from its mobile business. The figure includes gross revenue made from its mobile store Google Play and revenue generated by its ads.
Last year Google made an estimated $2.5 billion from its annual run rate. This excludes gross revenue made from Google Play and revenue from ads.
“On the $8 billion, so let me give you just a bit more information on it…A point that’s important is of the three categories I gave you: ads continues to be the bulk of it, the vast majority of it. And then on the case of the Google Play, it’s important to note from a modeling perspective that the — everything that’s content that is whether a book, a movie — content is actually booked on our books on a gross basis. Everything that is tied to apps is booked on a net basis,” Page said.
Google usually makes more money from ads viewed using desktop computers and laptops compared to mobile ads shown on tablets and smartphones. This may signal a decline in advertising money for the company since more and more people choose to browse with mobile devices instead of traditional PCs.
Despite this Google wants to focus its effort on its mobile business which include the Google Play marketplace and Android operating system. Page stated during the conference call that the company wanted to make advertising easier for users.
Google is “working very hard to simplify the campaign experience” and aim to lighten the process for advertisers and agencies,” Page added.