According to Forbes report, Google earnings report for Q1 2012 on April 12, with gross revenue of $10.65 billion, up 24% year-on-year. It also reported a significant jump in operating and net income, and the same ratio of traffic acquisition costs as a percentage of advertising revenues as in 2011 – 25%.
As a result of its push into mobile advertising, the cost-per-click dropped nearly 12% over last year, but there was a 39% growth in aggregate paid clicks, which led to a healthy increase in advertising revenues. We expect this trend to continue as mobile search advertising drives the next phase of earnings growth for Google while traditional online search advertising takes a backseat.
Facebook also recently acquired Instagram which is a fast growing Android App which already has about 5 million registered users. The deal was said to be within the $1 billion range and Facebook had to cough out that much because they has to fix Ad serving on mobile devices through Pictures. So now you know the deal. Mobile Apps is the future.
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