In the final moments of Google’s Q1 2014 Conference Call, listeners get a clearer sense of the verticals exploiting the best advantage from the CPC online advertising campaigns, some near term hurdles for mobile advertisers, and Google’s confidence level about the market for IaaS.
Autos, Travel, and Real Estate are the Top Vertical Consumers of Google CPC Ads for Q1 2014 in the US
Real Estate and Vacation Travel companies market intangible products. Real Estate offers are location sensitive; therefore, while the actual relative performance of product segments won’t be publicized in Google’s quarterly earnings reports until Q2 2014, it’s likely safe to say real estate advertisers play a big part in the growth of Google’s mobile CPC ad business for this quarter.
Near Term Technical Impediments to Further Growth in Google’s Mobile Ad Business
Per Nikesh Arora, Senior Vice President and Chief Business Officer at Google, until mobile users can avail of a simplified payment enablement method (delivering what’s likely to amount to a “one click” shopping experience), Google will continue to face obstacles as it works to help advertisers achieve better conversion rates. For a related reason, mobile users searching for specific information, online, need a method of rapidly navigating web sites to identify the information they require, without the kind of drill down click experience typical of desktop users. According to Arora, work is being done, at present, to lessen the severity of these obstacles as impediments to further growth.
Is Google Over Confident about the Future Potential of its Cloud IaaS Business?
Arora expressed a very high level of confidence in Google’s Cloud Business. A summary statement on his thoughts might be, as follows, “the efficiencies represented by Cloud IaaS will not fail to make themselves known, to businesses of all types”; “we’re very clearly in the early stages of this business”; “we don’t need to worry right now about product differentiation, there’s plenty of business to go around”.
All of the above are great thoughts, and readers should listen closely to the last 10 minutes of this webcast to catch Arora’s exact statements on this topic, but he did not mention any of the steps required to hasten the speed at which a larger proportion of businesses consume Google’s Cloud, IaaS offer. As I have written, all along in this blog, “Cloud First” is a great idea, but, unless and until a reliable method of securing business confidential information on public cloud data repositories is available, I wouldn’t plan on meteoric sales growth for this product anytime soon. As well, the user interface of any one of these services is still far too challenging to attract SMB and truly small business consumers, so improvement in the interface is critically important to increasing market size. Finally, Google should offer support for Microsoft® applications. My latest visit to their cloud offer web site did not result in any evidence they offer support for Office, Windows Server, SQL Server, SharePoint, etc.
© IMB Enterprises, Inc. & Ira Michael Blonder, 2014 All Rights Reserved