Is Google destined to follow in Yahoo!’s footsteps?

Is Google destined to follow in Yahoo!’s footsteps?
In the wake of a data leak that released Google’s earnings a bit ahead of schedule, one analyst (got to love the analysts) is hypothesizing that Google could find itself scraping to remain relevant in search engine dominance.

The primary reason, being cited by Eric Jackson of Ironfire, is the reported sharp decline in Google’s cost-per-click (CPC) revenue, which was down 15%, even in the face of increased ad sales. What does that reflect? Jackson believes that if CPC revenues continue to decline, it will be a precursor to decreased ad sales as more and more people switch to performing searches on mobile devices.

This is in line with other observations that desktop sourced searches noted their first decline.  Mobile ads are not as popular with advertisers, despite lower cost, because the ads are not as prominently displayed as can be done with a desktop. With a continued trend of a decline in desktop searches and a rise in mobile searches, Google faces a continued decline in CPC. That opens the door for other players to offer news ways for consumers to search. Jackson thinks that Apple may emerge as a contender in this realm.

Does that place Google on a similar path that Yahoo! followed? Specifically within the space of “desktop searching,” it is certainly possible. Is Google at risk of becoming like Yahoo! is today? Not really. Google and Yahoo! are similar in so many ways, yet the way Google is innovating and advancing its services is a wholesale departure from the avenues that Yahoo! took. Where Eric Jackson is focusing on desktop search and the revenue from CPC, he may be overlooking how Google is now positioned with its wide array of products, including the Android operating system. That alone puts quite a bit of leverage on Google’s side when it comes to advancing new advertising and marketing. We have already seen subtle shifts that began with Google’s revised privacy policy across all its services and platforms.

So, while technology may one day change the landscape where we may no longer say, “Let me Google that for you.” We have no doubt that Google will remain highly relevant in the search space.

source: CNBC

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19 Comments

1. nak1017

Posts: 328; Member since: Jan 08, 2010

Well with the success of Yahoo's mobile eco-system system, numerous patents and other products... oh wait... That's right, Google is the one trying to diversify and Yahoo isn't (didn't)...

10. bobfreking55

Posts: 866; Member since: Jul 15, 2011

after all, Google has Android which will replace desktops in no time. Google Now and even Android itself will evolve and innovate further into hybrids too - like Windows 8. Bing sucks anyway, Yahoo is sinking and there is no way that the world will turn to Siri.

13. PhenomFaz

Posts: 1236; Member since: Sep 26, 2012

exactly google is way past the search engine phase, it has mobile ecosystem, services, maps, an OS, now phones, project glass...and it'll keep growing

20. someones4

Posts: 627; Member since: Sep 16, 2012

Agreed. Search engines will be relevant but won't be Google's only main feature in the future. The only other search engine that may have chance is Bing. Imagine an Apple search engine. It'll be as hilarious as their maps.

2. pokharkarsaga

Posts: 545; Member since: Feb 23, 2012

Google is versatile innovator as compared to Yahoo,Apple,Microsoft.

3. XPERIA-KNIGHT unregistered

jumping to conclusions id say....

18. nak1017

Posts: 328; Member since: Jan 08, 2010

Best board game ever!

4. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

I would suggest that Google needs to address the issue of ad placement that seems to be the complaint voiced by advertisers. Revising the placement issue would seem to be something that occurs in a future release of the OS.

5. goflet

Posts: 50; Member since: Oct 31, 2011

who are these analysts popping around?..what are theis expertise?..

8. TheRetroReplay

Posts: 256; Member since: Mar 20, 2012

Their expertise is that they can say whatever they want and get paid for it

12. bobfreking55

Posts: 866; Member since: Jul 15, 2011

I'm an analyst and I analyze that these analysts are fakes. PAY ME!

6. cepcamba

Posts: 717; Member since: Feb 27, 2012

Most net-People still uses Google be it desktop or mobile and that's the bottom line.

7. Shino

Posts: 196; Member since: Jul 23, 2012

There might be a grain of truth in this. After all personally I do not use any Google product for over two years now. I most often use Bing as a search engine and very occasionally Google. There are too many ads in Google and the results in Bing and Yahoo are better as well.

14. nyuvo

Posts: 72; Member since: May 10, 2012

No google product at all for two years?? So you have not used: Google maps Youtube Android Google chrome browser Google+ Gmail Translate Scholar (if you are a student this is amazing) And the whole lot of other useful things that they provide. Seriously, you don't use youtube? even my parents use youtube.

17. toiletcleaner

Posts: 224; Member since: Oct 10, 2012

**After all personally I do not use any Google product for over two years now. I most often use Bing as a search engine and very occasionally Google. ** ? wait, do u use Google yes or not?

9. cso26

Posts: 10; Member since: Aug 01, 2012

oh wait!!! still my homepage is google.

11. TheRetroReplay

Posts: 256; Member since: Mar 20, 2012

Google isn't going to follow in Yahoo!'s footsteps. Yahoo! was good until they sold out, putting annoying advertisments on every page, coming no where close in search results and started selling people's email addresses to any spammer that wanted them. I have an old Yahoo! email that I never gave out to anyone or gave to any site and it got so much spam and their spam filters don't work. And by using that analysts own logic, Microsoft will do the same with Bing and if Apple goes into the search business (I doubt they will after the failure of Ping) they would do the same. Additionally, Yahoo! only did what they did because they were losing to Google and wanted to stay afloat. Google has plenty of other services in which they make money from, like YouTube and Blogger. I want to slap all these analysts because the second a company's revenue dips just a bit they immediately start saying that a company is going to fail. Every company has a time of the year where they didn't make that much money as the other times. But that idea seems to fly right over the head of the analysts.

15. someones4

Posts: 627; Member since: Sep 16, 2012

impossible..Google is the most diverse company apart from samsung, lg or berkshire hathaway. Google will not fall. besides, if they don't use the best, what other choices do they have?

16. darac

Posts: 2156; Member since: Oct 17, 2011

Google just broke the revenues record in the last report. And while their advert revenues may go down, it's clear they are making more money overall. The decrease in profit was caused by Motorola layoffs and 550m of additional loss that Motorola made

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