Google Inc (NASDAQ:GOOGL) will announce the earnings today and the pas one year has not been exciting one for the company.
Josh Lipton of CNBC was joined by Dan Costa, Editor-in-Chief at PCMag.com, and they discussed what to expect from the earnings and the discussion was surrounding mobile ad revenues and video ads. Dan said that the mobile ad revenue is hugely important for the earnings and overall revenue of Google Inc (NASDAQ:GOOGL) and the investors would be watching for it closely.
“Google makes great headlines, it is a growing company. They have great products, great technologies. They just had a great developer’s conference, where they said they want to put Android in phones, they want to put it in cars, put it in your home” Costa stated.
He also said that all this is exciting and makes users follow the technology; however, the business is mainly about “Cost Per Click”. The prices for it have been coming down which causes some concern. Costa thinks that video ads are the future of advertising and it looks like value-add. Google Inc (NASDAQ:GOOGL) is trying to take advantage of the video inventory in the TV market and prepare customized solutions from it. He said that there would be good movement in the video ad segment going forward.
He also touched on the I/O 2014 and he said that the conference has raised the expectations from the company and he thinks that Google Inc (NASDAQ:GOOGL) is amongst the companies that will dominate the digital world of the future.
“When you look long term, in terms of companies that are going to dominate our digital future, There’s really only a handful of companies that are really well positioned and Google is definitely one of them. “ Costa said.
He believes that Google Inc (NASDAQ:GOOGL) has been very aggressive on the product side and they also spend a lot of money on research which is a sign of a growing company. However, while all of this looks good, the advertising revenue is going to be a key factor in the results.