Contrary to what a number of analysts predicted, mobile Internet did Google (GOOG) good than harm. Instead of hurting the company's position, mobile interest has helped Google propel its status further. Whether it'd be iPhones, Samsung Galaxy handsets or Sony smartphones, mobile advertising is as lucrative as ever, and Google is at the forefront of it.
Stocks for the Net giant increased by 14 percent last Friday, as stocks closed past $1000. This is rare for public companies. This proves Google's continued growth since it went public last August 2004. The company started at $85 a share.
Google's success in mobile advertising makes it the third most-valuable U.S. company in terms of market capitalization. The company is now worth $338 billion. It is just one step behind Apple Inc. (AAPL) and Exxon Mobil Corp. (XOM). Investing $1,000 on its IPO will yield $11,899.
Google's investors reacted positively to the news. The company's growth in mobile advertising meant that as users across the globe continue to search through their handsets, Google can earn good money. It may even get better as people continue to rely on their smartphones.
Previously, increase in mobile device sales raised concerns. Will users still use their computers for searches? What happens to search engine platforms like Google? Can Google still gain as many clicks per ad if people use their mobile devices more? Whether advertisers will be willing to spend as much on fingernail-sized ads on handsets as much as they do on personal computers has also become a concern.
Google's posted numbers answered all those concerns. "Paid clicks" increased by 26 percent. These refer to the frequency of clicks on an ad link. This is the highest growth rate for the company in just a year.
While amount paid per click fell by 8 percent, the total volume of search from mobile devices outweighs this. Google will still earn despite the decline. The Net giant does not offer the actual numbers about its paid clicks, but Mark Mahaney from RBC Capital Markets provides a good estimate of such. He noted that it will probably be around 125 billion clicks in 2013. This is 24 percent more compared to 2012.
"This 'mobile is a cannibalization threat' has just been shown to be factually not true," he said.
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