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Summary:

Google did well in the fourth quarter, giving the company runway to talk about its next wave of initiatives. Executives said mobile should lead growth in the next year, with significant revenue to accompany widespread uptake of mobile devices that can handle data.

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Google did well in the fourth quarter, giving the company runway to talk about its next wave of initiatives. Specifically, executives that said alongside the larger category of display advertising, mobile will be the No. 1 growth area in the next year, with significant revenue to accompany the widespread uptake of mobile devices that can handle data.

With phone features like GPS and cameras, and the incorporation of personalization, social and local features, Google SVP of product management, Jonathan Rosenberg, said on today’s earning call for press and analysts, “There is potential to make this mobile web better than the PC web.” Rosenberg said advertisers are also wising up to mobile, finding that including their phone number or address will increase click-through rates. Further, targeting tools and analytics are improving monetization rates. However the company declined to break out mobile revenue.

On the device side, Google CEO Eric Schmidt said he felt the Android strategy has shown to be “a pretty clear success at this point.” He also sought to clarify Google’s approach on its own device, the Nexus One: “What the Nexus One is really about is a new way of buying a phone. We think that’s a natural evolution of a particular model. It does not exclude other models.”

The other interesting takeaway was a Schmidt comment with regard to Google’s stance on China. “We would like to stay in China, and we remain quite committed to being there,” he said, emphasizing that as company talks with the Chinese government about recent security breaches it continues to censor search results and operate its China business unchanged.

Related research: Google’s Mobile Strategy (GigaOM Pro subscription required)

  1. efforts to build mobile web mostly occur on desktop computers..

    i wonder in witch way mobile web will be better
    ..in mobility it will be for sure.

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  2. [...] As anyone that remembers the buffering messages associated with early video streaming technology of the 90s will recall, the waiting is the hardest part. Just like the background colors in the Tom Petty & The Heartbreakers video hint Google’s colorful logo there is finally a hint at YouTube profitability. [...]

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  3. Finally! we have been hearing about the emergence of mobile world since the web 1.0 days! :)

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  4. I truly agree that one day mobile phones could overtake Computers.

    We all are so much dependent on our iPhones already!

    Check http://www.theapplegoogle.com

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  5. Maybe but not for a very long time yet. The experience needs to be so much better then it is now. Also the bulk of us work all day in front of computers so the PC web isn’t going away anytime soon.

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  6. now what could possibly make mobile better than PC?
    1. Keyphrase tabbed location as opposed to keyword typed search?
    2. removal of adsense from results? the structure is not compatible with mobile screen.
    3. removal of 10′s of pages and millions of results nobody ever cared about?
    -these 3 are core features of google. Typed keywords and phone numbers will evaporate on next generation mobile content discovery and retrieval. inevitable innovation and efficiency will “change the face” of digital discovery for mobile and online.

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  7. If an ad is a very important feature of a web site or mobile apps, the one which makes money. Are Google ads bloat or well designed to integrate and add to the user experience.

    Point is, the integration of ads into a product (web page, mobile app) as a feature hasn’t even started. I don’t think Google will lead the way.

    Question are:
    What are the barriers preventing it? Except ad agencies/networks without a clue.
    Why did Apple buy an ad network?

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  8. 80% of the general population is not interested in ads on their mobile phones. who pays the inbound data charges? wonder why cable companies offer TV channels without ads?

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  9. I don’t see mobile web overtaking PC web anytime soon for most users. Mobile web is still an exercise in futility for me compared to just working on my laptop but it’s great for checking email, sports scores etc. I’m sure as devices, operating systems and content improve that will slowly change.

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