BY | December 20, 2012

By Amit Marvah

Google’s stock price hit a new all-time high as it is trading around $ 725. These moves cap an extraordinary run in which Google’s stock has surged more than 30% since July, when it traded around $560.

Google.com offers a dedicated platform to conduct searches on the Internet through PCs and wireless devices. Google makes money from contextual advertising known as keyword advertising that is shown based on the type of search a user conducts.

In addition to advertising on its search engine, Google makes money by placing advertisements on other Google-owned properties such as video sharing site YouTube, social networking site Orkut, email service Google Mail (Gmail), etc.

Also Google Search Ads is much more valuable than Ad Partnerships for Search & Content, YouTube, Gmail, Orkut and other divisions. Though Google maximum revenue comes from PC Search Ads which is around 51.5 %, whereas revenue from mobile search it is 32.4 % and mobile search Ads 6.1 %. Other sources like Youtube and Google Apps the revenue is 3.54% and 0.44% respectively.

But Google search on mobile is increasingly gaining importance as more and more users are shifting towards mobile devices like smartphones and tablets for web browsing. People all over the world are more prefer to use tablets and smartphones over PC’s. As a result, mobile search would increasingly gain importance for Google, rivaling its PC-based search in contributing towards Google’s stock.

There are plenty of reasons for Google to move up. First, Google Dominates Web Search on a Global Scale as Google retains market shares of around 66% and 97% in PC and mobile devices respectively. Second, Growing Internet Searches per PC in Use, as web penetration increases across emerging markets like India, users are expected to increasingly become more familiar and comfortable with using web search. Last, Smartphone and Tablet Usage on the Rise as the mobile revolution would have a big role to play in the way Google search is utilized.

Yahoo, Microsoft and AOL, the competitors of Google, are consistently pushed back and the larger share is retained by Google only.

Microsoft has started to take aggressive measures to take share from Google. It partnered with Yahoo and Facebook in 2010 to expand Bing market share.

Google also faces a potential threat from Apple’s Siri, which has enjoyed immense favor with users of iPhone 4S. While still not a credible threat, Siri could be paving the way for voice-enabled search becoming the norm, and Google might need to follow suit with its own version.

If Google continues to bring innovation like Google Instant, it could continue to gain market share.

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