Google’s mobile ads give stellar bump in profits

Google Share PriceGoogle’s share price shot up by 16.3% after they announced that profits climbed to $14.35 billion in three months when their second-quarter results were released.

The increased value in Google’s market cap from the share price rise means their market cap rose by some $40billion. When shares start trading today, after the PayPal spin off, eBay are likely to have a market cap of some $34billion… so Google added more than an whole eBay worth of value in just one day.

How did this happen? Well it’s all down to mobile and adverts on YouTube. Advertisers are starting to switch their budgets from desktop to invest in mobile ads and investors like what they’re seeing. Google has suffered in recent years as revenues from desktop adverts declined as mobile usage increased, but they’re bucking the trend with Product Listing Ads which do appear prominently on mobile.

What should this tell you? Well if you’re still using Adwords and haven’t optimised your paid search for mobile, not just for Google but all platforms, then this should be a priority for your business. Also it’s not just paid search, the mobile induced bump in Google’s revenues and subsequent valuation should be a strong indicator that you should revisit your website and marketplace listings and ensure that they’re totally mobile friendly too.