Mobile advertising continues to be thorn in Google's side


Google just can't seem to get mobile advertising right.

According to the latest figures released by Google on Thursday, its cost per click--the price advertisers pay each time a consumer clicks on an ad--dropped 6 percent year-over-year in the second quarter. While Google doesn't break down the figures for mobile and desktop ads, the decline is no doubt coming from mobile ads, judges Mike Isaac with the New York Times.

"The revenue opportunity [from ads] is very, very high, but right now mobile does not monetize as well as other forms," Nikesh Arora, Google's chief business officer, is quoted by Isaac as saying on a conference call with analysts.

However, Arora will no longer have to worry about monetizing mobile advertising for Google, since he is moving to Softbank, where he will be a vice chairman. Taking over his spot at Google will be Omid Kordestani, a senior adviser to Google CEO Larry Page.

In a blog, Page writes: "Omid has always been one of my closest advisors, especially since I became CEO again in 2011 ... There is nothing Omid doesn't know about Google, our customers and partners, and I know that under his leadership the team will excel."

Overall, monetizing things has not been a problem for Google. The company reported $16 billion in revenue for the second quarter, a healthy 22 percent year-over-year increase and better than analysts' predictions of $15.6 billion.

Other companies are having more success with the growing mobile advertising market than Google. Advertisers are expected to spend 83 percent more on mobile devices than they did last year, an $8 billion jump, according to the latest stats from eMarketer.

Facebook and Twitter are leading the way on mobile advertising. In the first quarter of this year, Facebook saw 59 percent of its overall ad revenue come from mobile, which represented a 30 percent increase from the first quarter of 2013. In addition, Twitter recently inked a $230 million deal with Omnicom under which Omnicom will integrate its automated ad buy unit Accuen with Twitter's mobile ad exchange MoPub.

For more:
- read the New York Times article
- check out Google's financials
- see Page's blog

Related Articles:
Mobile to spur highest US ad spending jump in a decade
Twitter gives mobile ads a boost
Social media giants embrace mobile advertising with gusto