Boston, MA 06/10/2014 (wallstreetpr) – Google Inc. (NASDAQ:GOOG) looks to be slowly losing its solid hold of mobile search ad revenue seen by statistics for the past two years. Despite branching into other businesses in the recent past, ad revenue still forms an integral part for the company’s future success and growth. Google is receiving a slow beating from unfamiliar specialized apps like KAYAK and Shazam that users are nowadays using for specialized mobile searches leaving the company with a small piece of the big pie.
Declining Mobile ad Market Share
Google Inc. (NASDAQ:GOOG) took home approximately 80% of the U.S Mobile ad revenue in 2012; the amount dropped to 68.5% last year with estimates pointing that the company could take a smaller chunk this year. Reduced market share has, on the other hand, not affected the company’s earnings from this segment; this is mainly, as a result, of increased usage of smartphones and tablets that have led to an increase in the spending of mobile ads.
Google total revenue could have been higher if the company’s market share maintained the 80% stake and did not drop to 68.5%. U.S mobile ad is expected to surpass the $17 billion mark this year and could reach as high as $30 billion by 2018. Because the company is losing its grip on ad market share, it won’t claim as much of the growth going forward even if the total mobile ad spending increases compared to the previous years.
Google Sets Eyes on Music Streaming Service Songza
Reports from the New York Post show that Google Inc. (NASDAQ:GOOG) has set its sights on Songza, a music streaming service that it values at $15 million. Google is courting the streaming service entity as it looks to curate its music streaming products considering it has 5.5 million user base. Songza is an appealing streaming provider as it can ensure streaming of music depending on one’s moods, time of the week as well as user’s activity.
Google Inc. (NASDAQ:GOOG) despite having a solid foothold in the streaming arena with products such as YouTube and Google play is looking for that extra human element that Songza can provide compared to other algorithm based playlists.
