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Showing posts with label google. Show all posts
Showing posts with label google. Show all posts
Tuesday, October 29, 2013
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The third-party cookies used by advertisers and their agencies to track web browsing activity are under attack. Browsers like Firefox and Internet Explorer try to block the years-old technology with "Do Not Track," and now internet behemoths are looking to replace cookies with their own tracking technologies. The newest entrant, according to Ad Age, is Microsoft, which sources say is working on a technology that could track users across Windows computers, Bing, Internet Explorer, Windows Phone devices, and Xbox consoles in order to serve highly targeted ads.

Microsoft said in a statement to the website that "We agree that going beyond the cookie is important. Our priority will be to find ways to do this that respect the interests of consumers." However, the primary interest is likely in filling the gaps where cookies fall short, like on mobile, consoles, and streaming video services, where they have limited to no ability to track user activity.

Microsoft looking to replace the cookie. Microsoft and and Google are eyeing their own technologies to track people's digital behaviors -- the sites they visit, the apps they use, the videos they watch, etc. Such a cookie replacement would help them better target ads -- as well as give them immense power in the the digital-advertising space. How might the longtime rivals' odds stack up?

MICROSOFT
xbox device
Manifesto:
Microsoft's cookie replacement would trace  users across Microsoft-owned devices and  services and target ads within those  environments.

DEVICES/PROGRAMS:
Desktop computers, tablets and  smartphones running Windows operating  system; Microsoft's Xbox gaming console;  Microsoft-run services including Internet  Explorer and Bing.

STRENGTHS:
Microsoft could bring TV into the tracking  and-targeting mix through Xbox, which lets  users watch videos on Hulu, YouTube and  even live TV through cable providers  Comcast Xfinity and Verizon FiOS.
  
Shortcomings:
Too few mobile users could hamper the  tracker's ability to span desktop, tablets and  smartphones. Research firm IDC projects  Microsoft's smartphone operating system's  market share at 3.9% globally compared  with  75.3% for Google's Android and 16.9%  for Apple's iOS.

Limiting the tracker to Microsoft's devices  and services would constrict some interest,  though the inclusion of Xbox could be a  game-changer.
GOOGLE
google nexus

Manifesto:
Details on Google's plans are scarce, but it would likely retain the current cookie's functionality and apply it to both the desktop and mobile web as well as mobile apps to track a single anonymized user across the various devices.

DEVICES/PROGRAMS:
Chrome desktop and mobile browser, Chrome desktop operating system, tablets and smartphones running Google's Android mobile operating system, Google's network of third-party sites and apps.

STRENGTHS:
Google already sees into the behaviors of billions of internet users through its own properties, including search, YouTube and Gmail, and network of third-party sites. Extending that across desktop and mobile and connecting the currently divided channels would give advertisers the most comprehensive window yet into consumers' digital habits.

Shortcomings:
Google's online-advertising dominance already makes people wary. Owning digital advertising's central-targeting technology and the data it reaps could re-raise regulatory concerns.

Google's position atop the digital-advertising food chain all but guarantees its cookie replacement will gain traction—assuming the advertising community and regulators are willing to cede the company even more power.
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Saturday, October 19, 2013
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English: Google Logo officially released on Ma...
 (Photo credit: Wikipedia)
Google is set to release its Q3 2013 earnings on Thursday, October 17. While the company continues to innovate and introduce new products and services, the revenue growth in its core ads is slowing down.

This has forced the company to look at other revenue streams to sustain growth. Apart from launching Chromcast during the quarter, the company also launched Motorola’s Moto-X phone. With these new launches Google is aiming to not only improve online ad revenues, but also rake in more dollars by selling devices. In this earnings announcement, we will continue to closely monitor the growth in Google’s core search ads business. Additionally, we will keep an eye on the Motorola division for signs of growth.
Google’s Device Strategy To Boost Online PC Ads Revenues
Google derives most of its value from advertising where it competes primarily with Microsoft, Yahoo and Facebook. According to our estimates, standard PC search ads account for over 30% of Google’s overall value and 60% of its revenues. However, the recent trend in earnings indicates that the growth in online PC ads revenues is slowing down. Additionally, the company’s market share of the U.S. search marketplace has been stagnant at 67%, according to latest data by com Score.

However, standard PC search continues to be the cash cow for Google. The company is exploring new avenues to boost market share in the PC search ads division. In order to maintain its dominance in PC search, Google is tying up with original equipment manufacturers (OEMs) such as HP, Acer and Toshiba to launch the next generation of Chromebook. This is an important development as the Chromebook will route all search queries through Google by default, and Google can improve its market share if Chromebook sales increase. With a dominant market share, we expect advertisers will continue to earmark more funds for search ads on Google. We expect that revenues from PC search ads will continue to grow due to a rise in the number of searches and resulting paid clicks. However, revenue per search for PCs is declining as advertisers are increasingly routing their budget spend towards mobile devices. In this earnings announcement, we continue to closely monitor the RPS metric for better understanding of this trend.


Mobile Ads To Drive Revenue Growth


We currently estimate that mobile search ads contribute approximately a third of the firm’s value. According to our estimates, the company’s mobile revenues more than doubled in 2012 to around $5.2 billion from $2.5 billion in 2011. Gartner has predicted that worldwide mobile ad revenue will exceed $11 billion in 2013, and that the growth rate for ad revenue will exceed 400% during 2011-2016. Even though mobile search ads are expected to only generate 17% of the company’s total revenues in 2013, we expect this figure to reach to almost 30% by 2016.

Google continues to bolster its search capabilities on the mobile platform by increasing support for mobile devices that run Android OS. Currently, there are over 900 million Android devices worldwide, and its share in the smartphone OS market is on the rise. The market share grew to 80% of total shipments during the second quarter, up from 69% last year. In our opinion, the smartphone market is key for Google’s mobile revenue growth over the long term because more users will access Internet via mobile devices. During this earnings announcement, we will focus on Google’s mobile advertising run rate and growth in Android platform usage.

YouTube Revenues In Focus


In a previous note, we argued that Google is systematically targeting TV ad dollars with the launch of new services and devices such as Chromcast for YouTube. Considering the explosive growth in online video ads spent, we expect YouTube to be a key contributor to Google’s revenue growth going forward. We expect that the unique user count for YouTube will rise during the quarter due to increasing popularity of this platform. Also, it will be interesting to see to what extent the new partnerships that Google has forged with prominent media studios have increased YouTube’s monetization.


Motorola Mobility Sales


The Motorola Mobility division continues to post operational losses since its acquisition by Google last year. Although Google sold most of Motorola’s non-core mobile business, it has re-introduced Motorola in the mainstream mobile market with the launch of Moto X smartphone. We will be looking out for the sales number of Motorola’s new offering during the quarter. Additionally, we want to know Google’s strategy to stem losses at this division.
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