Posted 10/19/2012 at 10:26 AM
Posted 4 years ago
Google caused a bit of a stir on Thursday morning when a printer’s mistake wiped billions off the company’s stock valuation; however, the issue did not seem to dampen CEO Larry Page’s mood at Google’s quarterly earning conference call.
Speaking in a hoarse voice due to a recent vocal condition, Page first apologized for the accidental results release by telling analysts that he was sorry for the “scramble earlier today,” he then went on, “We’ve had a really strong quarter and I’m really happy with our business. Google’s been operating for 14 years and we’ve just cleared our first $14bn quarter – not bad for a teenager”
Much of the talk from Page naturally focused on advertising as this is where Google generate most of their revenue, with preference given to mobile advertising.
Page was keen to tell those in attendance that mobile is where Google is “uniquely positioned” to succeed.
“We took a big bet on Android back in 2005. We believed that aligning standards around an open source operating system would drive innovation across the industry. Most people thought we were nuts,” Page said of Google’s mobile business. There are now over half a billion handsets using Android with around 1.3 million activations per day globally – not exactly what I would call nuts!
Page explained that internet use is going from the single screen experience to multiple screens, with tablets and smartphones the way forward. He also told analysts that last year Google’s mobile advertising run rate was $2.5 billion, but this year that figure has risen to $8 billion. That does include revenue from content and apps sold on Google Play, but it is mobile ad revenues that make up the vast majority of the figure.
The sheer number of active Android devices on the market has given Google a real stake in the mobile market, Page said, particularly when married to Chrome. Google launched Chrome for Android in February, and while Page admitted the number of users was pretty limited at the moment, he promised the browser would spread. Chrome on Android and full synchronization with the desktop browser would certainly help Google’s revenue even further.
And Google’s plans to bring in even more revenue don’t stop at Chrome. The company has revealed that work is already going ahead on a new integrated advertising platform that will work across mobile, desktop and television.
You can read Larry Page’s remarks here.