The Google, The Bad & The Ugly

28th April 2014

Google’s market shares dropped by six percent last week week, totalling a huge $22billion leaving people asking whether the recent email privacy scandal could be to blame. Are worried investors realising Gmail’s users are concerned or can we expect any less in a society of online surveillance?

The Privacy Issues
Google was recently accused of a lack of transparency with regards to just how private Gmail’s users messages actually were. The terms of service have now been updated and now state, to the shock of many users, that all emails are scanned, read and analysed by Google’s automated machines. Although Google uses the information, which is scanned purely by machine, to target particular demographics for advertising purposes, it has left users’ privacy somewhat betrayed and appears to be indicative of the Big Brother image Google has unwittingly created for themselves in recent years.

The Mobile Issues
Another element that could perhaps have led to the recent market dip is the lack of power held by Google in the mobile and smartphone market. As more people take to their phones rather than their PCs, the company’s cost-per-click ad revenue has also decreased. This, along with a huge loss in the sale of Motorola Mobility (bought for $12.5billion and sold for just $3billion), shows a lack of prominence in the mobile industry which has become the forerunner in advertising potential.

Mobile recruitment as we’ve reported on previously is huge business and growing rapidly; this fall in PPC spend could be another indicator of where consumer’s browsing trends are headed.

The Future for Google
Despite the various problems that have been highlighted recently, Google has turned over a profit of $3.45billion which is a rise of 3%. Although the issues concerning privacy are a much talked-about subject, it does appear as though Google’s power in the market will be regained. Although investors are worried about the losses with regards to advertising and mobile revenue, Google remains an engaging and endlessly discussable powerhouse of a company.

Jamie Mistlin find me on Google+.