google earnings

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Alphabet, the holding company parent of Google, just announced earnings and they were amazing. Microsoft, too, announced earnings with which they were quite happy following some tumultuous, leggy years.  I’m no economist so the difference between revenue, net income and post-tax profit are a bit beyond me but I will make one observation, software is back and cloud computing is the haps, to quote Dave Robicheaux’s pal Cletus.

Of course, we still have to make stuff we can sit on (furniture), wear, eat and communicate with (telecoms), but it seems the business of hosting and information access is as profitable as ever. The margins associated with software and cloud computing are killer. The margins on content aren’t bad but a distant second. Companies like Google and Microsoft are closer to “pure play” software and hosting companies than most. too. Companies like Verizon, on the border of a deal with Yahoo! (content), and Netflix, smitten by Hollywood, are drifting away from their core – software and hosting.

For investors, code and iron are looking more and more attractive.



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This just in: Google earnings are up but the price per share dropped. Why?  Because it’s underperforming in mobile. The most interesting fact in the NYT story was this:

  • Mobile ads cost a half to two-thirds more than do desktop served ads, but lead to purchase a quarter to a third less.

Readers who have heard me espouse Twitch Point Planning will perhaps see how the “mapping and manipulating” of consumers closer to a sale with a digital buildable (content seems too flat a term) will outperform an ad the size of a wax bean.

I’ve spoken with some pretty smart people in the business — really smart people — and as much as they all think about “what’s next,” they have a hard time grasping that a twitch point buildable is a better revenue generator than an ad.  For some, I guess, vision is about only what you can see. Where Christopher Columbus is???

Marketers need to think about Twitch Points. Only then should they think about content marketing. Content marketing without a brand plan is typing and recording. Content marketing without understanding (fast twitch) digital media and consumer purchase behavior is what?  Advertising. 


UPDATE:  After the market opened today, the share price of Google soared over $1,000 before retreating slightly.  I guess investors think Google will fix the mobile ad problem.


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