Google Payments Banks on Mobile
Google’s revenue from desktop ads has been increasing for quite some time, but its prospects in the mobile world remain questionable. Its revenue from ads on mobile devices isn’t comparable to that from desktop advertising. But with mobile being touted to be the future of advertising and commerce, Google has pinned high hopes on mobile’s potential and Google Payments are only expected to swell.
With mobile being seen more as a “behavior” than a device, it has a range of unique characteristics. The world’s largest search engine is leveraging mobile to delivering a product specially designed to mobile’s strengths. Today, an increasing number of consumers surf the internet on mobile to find out more about different shopping choices and goods/services in a store in their vicinity.
Recently, Google introduced the “estimated store visits” feature to expand its conversion measurement suite. The feature allows an advertiser to see an accurate estimate of how many times an ad click resulted in a store visit. The results show that ads clicked resulted in 12 percent store visits.
Not only this, Google’s eCommerce efforts are also expected to grow stronger to yield good revenue. There has been a significant jump in Google’s mobile shopping traffic, which has gone up by almost 100 percent since the fourth quarter of 2013, with consumers using mobile to make buying decisions on the go. As a result, mobile shopping clicks exceed those on desktop.
Growing Competition
Growth on YouTube soared 50 percent to become 1 billion in 2014. YouTube’s True View format only charges merchants for the advertisements viewers watch. Mobile revenues on YouTube are rising year after year, since an increasing number of consumers prefer to shop on the go.
During Black Friday 2014, Walmart leveraged YouTube’s True View format and succeeded in driving a 300 percent increase week by week in channel views. This accounted for an almost 600 percent rise in views of their channel over the US holiday week in 2014.
Google has made its intentions clear about its mobile commerce ambitions, but hasn’t leaked much info about Google Wallet. While its focus is to turn the shopping intention of consumers into actions(or Browsers into Shoppers), it has nothing much to say about its mobile payments plans. As far as payment is concerned, its goal is to remove the friction encountered by consumers while shopping and have a comprehensive, fully functional Google Payments system.
The “Buy With Google” option is especially designed to make online purchase easier for users, enabling them to purchase with two clicks. Google is increasingly focused in making it easier for consumers to shop and pay online, offering a friction-less and pleasant shopping experience.
Growing But Missing Expectations
Unfortunately, Google is missing analyst’s expectations more often, while its challenges with mobile seem to be continuing, with Facebook becoming an active competitor in the field of mobile ads. Additionally, consumers have access to new ways of looking for information, without requiring Google’s assistance.
Statistics reveal that Google’s share of the market plummeted to 46.8 percent in 2014 from 50 percent in 2013, especially with Facebook’s ever-growing popularity and share of the market.
Surely, Google now needs some Mobile Magic and Diversification looks like the Safest Bet!
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