Google for Mobile: Understanding Google's Revenue Streams from Mobile Platforms

google's mobile products

The mobile search market is experiencing rapid growth. In 2012 alone, mobile searches have surged by 200%, and projections indicate that mobile access to Google’s services will become the dominant method within the next year. Contrary to early speculation, Google is not doomed from a sudden shift to mobile.

In reality, the opposite is true! Google has successfully transitioned into a “mobile first” company. At present, advertising constitutes the majority of Google’s $8B run-rate mobile revenue (excluding revenue from Motorola). This is precisely why Google is overhauling its pay-per-click advertising platform, AdWords. Seeking to attract more businesses to mobile advertising, Google is simplifying mobile PPC significantly through the implementation of enhanced campaigns. Furthermore, new features such as mobile conversion types, offer extensions, and a mobile app ad type are being introduced to specifically address mobile-centric use cases.

Nexus-security’s recent investigation into Google’s mobile product portfolio highlights the company’s mobile strategy, which revolves around investments in four core areas: Mobile Devices, Mobile Apps, Mobile Content, and Mobile Advertising.

Such a compelling mobile product portfolio leads us to believe that existing advertising formats have only begun to tap into the potential of mobile monetization.

Having already demonstrated how Google generates revenue from search ads, we present a graphic below outlining Google’s top 20 mobile products. Each product is accompanied by a report card assessing its quality, adoption rate, originality, value to advertisers, and other relevant criteria. Explore further to understand the functionality of each product and its contribution to Google’s bottom line.

Click here to see the full-size infographic.

Here’s a concise overview of Google’s four primary focus areas in the mobile space and the corresponding products within each category.

Mobile Advertising: Google Ads for Mobile

Google’s mobile advertising is experiencing a surge in popularity. Some of their key advertising products for mobile search are:

  • Google AdWords – Utilized by millions globally, AdWords, Google’s online ad serving platform, provides mobile advertisers with effective targeting options and comprehensive ROI reporting tools.
  • Location and Call Extensions – These ad extensions prove mutually beneficial by enabling mobile advertisers to connect with local searchers and facilitating easy conversion.
  • Google Offers – Google’s competitive response to platforms like Groupon and Living Social, Google Offers provides mobile discounts redeemable both online and at physical stores.
  • Google AdMob – A mobile advertising platform specifically designed for mobile apps, allowing marketers to promote their apps within other existing apps.

Killer Mobile Apps: Google Apps for Mobile

Google’s diverse mobile app product portfolio includes:

  • Google Maps – Recognized as the leading mobile map and GPS application, Google Maps highlights the company’s understanding of location as a key factor in providing a superior search experience (with location-related queries accounting for 25% of all Google searches).
  • Google Now – A system incorporating Siri-like voice commands and a card interface for personalized updates, Google Now embodies the ideal smartphone experience.
  • Google+ Local – This app empowers mobile users to discover nearby restaurants and entertainment options with the added benefit of Zagat ratings.
  • Google Play Books – Google’s alternative to Kindle, Google Play Books, allows users to enjoy ebooks on their mobile devices.
  • Google Wallet – A secure platform for online payments through Google’s cloud servers, Google Wallet represents a significant step towards a future with less reliance on cash and physical cards, despite its limited current availability.
  • Google Voice – Offering cost-effective international calls, free text messaging, voicemail transcriptions, and more, Google Voice enhances mobile communication.
  • Google Search App – This app simplifies Google search navigation directly on mobile devices.
  • Google Shopper – Aiding mobile users in their product discovery and purchasing decisions, the Google Shopper app simplifies online shopping.
  • Google Goggles – As a mobile image recognition app, Google Goggles allows users to capture images of objects to retrieve further information. While still in its early stages, it represents exciting potential for visual search technology.

Mobile Content: Google Content for Mobile

  • YouTube – Undoubtedly the leading video sharing platform globally, YouTube has witnessed a significant shift towards mobile consumption, with 40% of video views now originating from mobile devices, totaling a staggering one billion views per day. Capitalizing on this trend, Google also incorporates YouTube advertisements into this daily mobile viewership.
  • Google Play – Google’s answer to iTunes, Google Play serves as an app store for acquiring mobile applications, ebooks, and music.

Mobile Devices: Google Devices for Mobile

  • Android – Built on Linux and designed with an open-source approach, Google’s Android operating system has emerged as the world’s most widely adopted platform for smartphones.
  • Motorola – The acquisition of Motorola fueled the ambition of merging exceptional hardware with Android’s software prowess, a vision yet to be fully realized.
  • Chrome for Mobile – Google’s Chrome browser, optimized for mobile, streamlines web navigation on mobile devices.
  • Google Glass – Though still under development, Google’s highly anticipated augmented reality glasses, reminiscent of science fiction, have generated significant excitement and curiosity.
Grade Mobile PPC

The Future of Mobile

This infographic only showcases a fraction of Google’s mobile product development efforts, focusing on the most compelling and profitable ventures in the mobile space. It is evident that Google is strategically positioned to be a dominant force in the ongoing mobile revolution. In the realm of mobile advertising, Google has only scratched the surface of its potential. We can anticipate groundbreaking advancements in mobile advertising from Google, accompanied by billions in mobile ad revenue in the years to come.

Tweetables: Google Mobile Products

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