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GOOG Sliding With Markets
The market was mixed in early trading as both Bank of America and Morgan Stanley beat expectations but dove in the negative after miss in jobless claims and increased concerns over Europe. Shares of GOOG sliding with tech. Investors continue look for Android momentum, clarity on the Motorola acquisition; regaining ground in China; the resurgence of Google TV; continued growth of YouTube; expansion of social network Google+ and progress in other initiatives (location-based services, mapping, Google Wallet, Google Music, etc.). The stock trades at approximately 11.0x Enterprise Value / EBIT.Google’s CPC Rates Could Fall For a while During ‘Transition’ Period (Business Insider)
What transition you ask? Well, one theory is this all started with Google’s acquisition of AdMeld, the real-time bidding platform for publishers. Now those publishers are all in Google’s ad system. So here’s the problem: when advertisers win a bid to place an ad on Google, they do not pay the price they bid. They pay a tiny bit more than the second-highest bid. But display ads still have fewer bidders. So relatively speaking, CPCs for display ads are lower than CPCs for search ads. Adding a bunch of new display inventory will drive average CPCs down a bit.
Sergey Tries To Qualify His Statements, Says The Same Thing (Google+)
Sergey Brin is trying to clarify his recent statements but is still spouting more ‘open’ nonsense. It’s all very silly. Google’s search algorithm is nothing if not the Web’s biggest gatekeeper. The Google+ post is basically in line with what was written in the original interview. It’s the part where he criticises Facebook and Apple, he feels has been over-exaggerated. “I have much admiration for two of the companies we discussed — Apple and Facebook. I have always admired Apple’s products.” Yeah, yeah.
Google Introducing New Ad Plan To Boost Online Ad Sales (Mashable)
Attempting to move the industry behind click-throughs and impressions, Google introduced a new plan to measure online advertising dubbed “Brand Activate.” The plan is designed to “re-imagine online measurement for brand marketers.” With better metrics, the company hopes marketers will feel more comfortable allocating more money to online advertising. As part of the rollout, Google will use a measurement tool called GRP, or gross rating point, which is common in television advertising.
Internet Advertising Revenue Hits All Time High, Mobile Fastest Growing Sector (IAB)
According to The Interactive Advertising Bureau, Internet ad revenue revenue grew 22% in 2011, to an all-time high of $31 billion. The fourth quarter were also the all-time best three months at $9 billion, an increase of 20% from 2010. Search remains the biggest sector, with $14.8 billion in revenue, up from $11.7 billion in 2010. Not surprisingly, however, in terms of growth rates, mobile is the fastest-growing sector, more than doubling from $0.6 billion in 2010 to $1.6 billion in 2011. Display advertising grew 35% to $11.1 billion overall, with video accounting for $1.8 billion. All good news for Google.
What’s The Deal With Google Wallet? (Business Insider)
It’s been almost a year since Google Wallet was introduced and about seven months since it went live. Yet the service is still limited to one carrier partner (Sprint) and one smartphone line. Verizon, along with AT&T and T-Mobile, have plans for their own mobile payments service, Isis, which is rumoured to launch very soon. That puts Google in a sticky situation. The nation’s two largest carriers along with T-Mobile aren’t very likely to allow Google Wallet any time soon.
Some Soundbites From The Oracle / Google Trial (Various)
Everything from denial to saying Android isn’t important:
- Larry Page Gets Grilled (USA Today): He looked like he wished he could have called in sick. During his time on the stand, Page rarely looked at Oracle attorney David Boies and frequently said he couldn’t remember seeing some of the internal Google documents that Oracle is using to build its case. That’s not good.
- Larry Page Says Google ‘Did Nothing Wrong’ (BusinessWeek): Google acknowledges using Java to develop Android and Page today confirmed that Google didn’t take a Java licence. Google says its use was fair and legal and Google engineers wrote original code for Android. Larry told a jury his company “did nothing wrong.”
- Larry Page Isn’t Sure Android Is Critical To Google (Business Insider): Really? Then why are you investing so heavily in it? Specifically, Page said that he wouldn’t say Android is a critical asset to Google. In the broadest sense, he’s right. Search is a critical asset. But that’s just dumb.
- Here Is How Oracle Will Defend Its $1 Billion Lawsuit (Business Insider): Oracle laid out many of its claims which include a bunch of damning e-mails from Google executives allegedly discussing their need to licence Java from Sun, how they didn’t want to give in to Sun’s demands, and how they went ahead and used Java anyway.
- Here Is How Google Will Defend Itself (Business Insider): Here are some slides from Google’s defence. These emails and public statements from Sun and Oracle executives, including Larry Ellison, seem to show that original Java owner Sun was perfectly happy to have Google use Java for Android. And then Oracle bought Sun.
More to come.