Fears For Google Following $AU99bn Market Value Wipe

Mountain View, California, USA - March 29, 2018: Google sign on the building at Google's headquarters in Silicon Valley . Google is an American technology company in Internet-related services and products.

Google’s parent company Alphabet Inc’s revenue hit its lowest in almost seven years wiping $70bn ($AU99bn) off its market value, sparking fear for Google as advertisers shift digital spend to rivals.

The stock fell as much as 7.5 percent on Tuesday in New York, a day after the company reported its slowest quarterly revenue growth in three years.

Roughly 85 percent of the company’s revenue comes from Google’s ad business.

The results follow growing fear for Google as advertisers start to move their ad spend from platforms where people search for products, to places like Amazon, where people are actually making the purchase. Such a move helps advertisers get closer to the moment of transaction.

Historically, Google is the first place consumers go when searching for a product, which is what has allowed the search engine to charge premium prices to retailers and advertisers wanting to reach customers online.

However, consumers have been steadily turning to other search giants like Amazon.com, with the e-commerce platform taking a large share of the global ad market, invariably reducing Google’s share.

Amazon’s digital advertising franchise is now the third largest in the U.S., just behind Google and Facebook, according to EMarketer estimates.

The online retailer revealed its first-quarter sales in Amazon’s “other” segment last week, which is predominantly advertising, increased 34 percent to $2.72 billion ($AU3.8bn), which is still less than one-tenth of Google’s ad sales of US$36.3 billion ($AU51.9bn).




Please login with linkedin to comment

Advertising alphabet Google

Latest News

Canva Unveils Enterprise Era With Powerful New Workplace Products Debuted At Canva Create
  • Media

Canva Unveils Enterprise Era With Powerful New Workplace Products Debuted At Canva Create

At its first international Canva Create event in Los Angeles today, Canva, the world’s only all-in-one visual communication platform, accelerated its focus on the enterprise, debuting the platform’s biggest overhaul in a decade alongside a range of new workplace products and services poised to redefine the way millions of people work. Lead image: Canva Founders […]

Cashrewards: A Decade Strong!
  • Partner Content

Cashrewards: A Decade Strong!

Cashrewards' CEO muses on the company's 10 year anniversary. Still refusing to answer questions about a possible party.

Partner Content

by B&T Magazine

B&T Magazine
Network 10 Axes Gladiators
  • Media

Network 10 Axes Gladiators

Alas, 10's Gladiators has gone as quickly as it came. Should make for a very wild garage sale, however.