Google Inc (NASDAQ:GOOGL) is going to change the way it ranks the websites and will start punishing the websites which are not mobile friendly from this week. In a program on CNBC, Eric Schiffer, Patriarch Equity CEO said that the real reason behind this change the dwindling ads revenue of Google Inc (NASDAQ:GOOGL). Back in 2012 when the world see a surge in mobile usage, Google Inc (NASDAQ:GOOGL) understood that very soon, a major chunk of its traffic will be coming from mobile. It simply relocated the ads and made them mobile friendly. But what it not took care of is that the advertiser end was not mobile friendly. Whenever a user clicked the ad from the mobile device, the website or web store which opened was not mobile friendly, resulting in an immediate close button press by the user. This piled up to give a huge blow to the advertisers and as a result, they stopped paying Google Inc (NASDAQ:GOOGL) higher costs for ads.
With the latest change, Google Inc (NASDAQ:GOOGL) is actually forcing the small businesses to change the webs stores and sites. This would be followed by an ads cost increase.
Another expert, Rolfe Winkler said that Google Inc (NASDAQ:GOOGL) oversaw this change years ago. He quoted a Google Inc (NASDAQ:GOOGL) executive who said that very soon, mobile searches will beat the number of search queries coming from PCs.
Schiffer said that apparently, it may seem a harsh change, but Google Inc (NASDAQ:GOOGL) is helping the small business. Smartphones are here to stay. The sooner the small businesses change their websites to favor small interfaces the better.
David Tepper’s Appaloosa Management Lp owns around 600,000 Google Inc (NASDAQ:GOOGL) shares.
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