Waseem Saddique Marketing Services in Birmingham have said that analysts are
worried about Google’s ability to charge high prices for advertisements on
mobile devices.
Google’s shares have dropped 5% even though the technology
giant reported a first-quarter profit rise of 3%.
Google’s inability to maintain advertising prices has left
investors preoccupied despite profits being reported of around £2.5 billion.
A senior Google analyst from Waseem Saddique Marketing Services has said
“Decreases in Google’s shares could have a potential knock on affect on the
price of mobile advertising; Pay per click (PPC) being the first thing to change.”
Google has recently sold smartphone maker Lenovo for almost
$3 Billion after paying $12.5 Billion for the company less than two years ago.
It seems that advertisers are reluctant to pay as much for
advertisements on mobile devices in comparison to Google’s desktop ad.
A pay per click(PPC) advertising
specialist from Waseem Saddique Marketing Services has said “We expect that mobile ad prices
will eventually catch up with desktop advertisements as the future will see
users being able to purchase much more easily online.”
Results from Google were not the only disappointment to
investors as technology giant IBM reported its lowest quarterly revenue in the
last five years. IBM’s revenue dropped by 4% to $22.5 Billion. It’s been
reported that this is down to the weak sales of hardware.
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