Today, Google Inc (NASDAQ:GOOGL) is celebrating its 10th anniversary as a public company. In the last 10 years, Google stock has increased by more than a 1,300%, which clearly shows the growth of this company. James Dix, media analyst at Wedbush Securities, talked on CNBC about the evolution of Google Inc (NASDAQ:GOOGL) in the last decade and the company’s future.
Dix thinks that advertising played a major part in Google Inc (NASDAQ:GOOGL)’s growth. He added that the advertising will play a major role in the outlook of the company shares going forward. Through advertising, the consumer wants to know about different products and services, whereas advertisers want to display their advertisements to the consumers at the right moment. Dix feels that Google has satisfied both the consumer and advertiser needs very well.
Google Inc (NASDAQ:GOOGL) introduced the ‘Trueview’ ads on YouTube in 2011, which received tremendous response from both the consumers and advertisers. These types of ads give the option of skipping the advertisement after 5 seconds to the consumer. The advertiser gets charged by Google only when the consumer opts to watch the advertisement.
“[…] But it’s one way that Google has basically been able to prove some type of engagement for the video ads on its video platform, which to a large extent, depend on a different type of video content than advertisers have been used to with television,” Dix added.
Google Inc (NASDAQ:GOOGL) has ventured into a lot of new ideas recently. Dix said that Google has got the majority of their investment returns from the search engine in the last 10 years. He added that they are looking for other similar high return investments, which pushed them outside their core search engine into ideas like Google Glass, Google Fiber, driverless cars, etc. He feels that majority of these investments might realize the returns in a longer period.
Disclosure: none
Suggested Articles:
