Google Reports 22% Revenue Growth, Mobile App Indexing Could Create Major Revenue Stream

Google reported that revenue for the second quarter rose 22% to $15.9 billion, compared with the year-ago quarter. Aggregate paid clicks for ads served on Google sites and the sites of its network partners rose 25% during the period.

The company doesn't call out revenue from mobile advertising, but some agency executives believe smartphones and tablets continue to support an upward climb through what the industry calls "deep linking."

Patrick Pichette, Google senior vice president and CFO, said during the earnings call Thursday that the company is "aggressively trying to make sure app indexing happens, and it's available and easily accessible across devices."

Monetizing the ability to index apps and features will follow. At least one agency executive believes Google's ability to "deep link" into mobile applications, since it can't control all hardware and operating systems, will help the company find another strong revenue stream.

Craig Elimeliah, senior vice president, director of creative technology at RAPP, a Madison Avenue agency, believes "other" encompasses services and tools like App Deep Linking for mobile. Google indexes app features and functions running on the android platform similar to the way it indexes Web site pages. "The ability to deep link into the android operating system gives them a huge advantage to reach inside the mobile network," said Elimeliah. "Google is re-engineering their search to go deep inside apps."

Google's sites generated revenue of $10.9 billion, contributing 69% to total revenue, in the second quarter of 2014. The increase represents 23%. Partner site revenue rose 7% to $3.42 billion, or 21% of total revenue. Revenue generated from "other" rose 53% to $1.6 billion, or 10% of total revenue, and money from international ventures outside the U.S. totaled $9.33 billion, representing an increase of 55%, compared with the same quarter in the prior year.

YouTube engagement ads like TrueView and other owned and operated properties like Maps and Finance rose 33%, compared with the year-ago quarter. Network paid clicks--clicks related to ads served on non-Google properties participating in AdSense for Search, AdSense for Content, and AdMob businesses, rose 9%, respectively.


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