With more and more consumers shifting to tablets and smartphones in recent years, internet companies have been focusing more on their mobile business. This trend is likely to continue going forward as consumers shift to mobile computing. Google Inc. has been one of the better performers in the mobile arena. Read our full technical report on Google. This free report is available by signing up at
However, although more people access the internet with their smartphones and tablets, companies are making very little money from mobile advertising. One reason is that advertisers do not pay as much for mobile ads as they do for ads on desktop. Indeed, this has been a concern for companies such as Google as the lower price of mobile ads has resulted in a drop in average cost per click.
Recent Quarterly Results Encouraging
The drop in average cost per click has been a concern for Google, however, the company's recent quarterly results showed a slower decline in the average cost per click. Google's average cost per click was 6% in the fourth quarter of 2012, compared to a decline of 15% in the previous quarter. On a sequential basis, the company's average cost per click rose 2%. This is an encouraging trend.
If this trend continues, mobile advertising would become a lot more profitable for Google.
A couple of weeks back, Google reported fourth quarter revenue of $14.4 billion, up 36% over the same period in the previous year. Excluding commissions to advertising partners, Google's revenue for the quarter was $11.34 billion. Net income for the quarter was $2.89 billion, representing an increase of 7% over the same period in the previous year.
Enhanced Offerings - Enter Groupon
As the internet market continues to grow, companies have also been looking to boost their offerings as they look to gain market share. A number of companies in the recent past have announced plans to enhance their offerings.
Daily deals site Groupon Inc. this month announced the release of the newest version of the Groupon Merchants app for Android (v2.2). The latest version incorporates Groupon Payments into the platform, providing merchants a better way to accept credit cards at the guaranteed lowest overall rates. Sign up today for the free technical analysis on Groupon at
Gene Alston, General Manager of Groupon Payments, recently said that the company is thrilled to bring the powerful features of the Groupon Merchants app and the cost savings and convenience of Groupon Payments to more merchants with smartphones. Alston said that the app is an effective tool for merchants looking to process payments and track customer growth.
Earlier this month, Groupon also unveiled the Merchant Impact Report. The free tool, which is built into the Groupon Merchant Center, provides merchants a clear view of how the company is driving their business by making it possible to assess the performance of their promotion.
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