Transcript:
The pressure is on add pricing at Google and Facebook according to a Bloomberg analysis of earnings reports a higher mix of international revenue and mobile growth is causing ad rates to decline Google’s cost per click was down 12 percent from last year although the number of clicks was up 39% and just today Google is launching its mobile playbook to help both businesses and advertisers build their mobile presence for more on the impact of mobile on google i’m joined by google’s head of global sales global mobile sales Jason espero that’s a tongue twister Jason welcome to Bloomberg West thanks for havin tell me about this mobile playbook obviously this is to help businesses build and invest in their mobile presence and you guys have done a lot of research as to why this is important why should business businesses devote resources to mobile well it starts with a consumer right the the we’re living through a massive change in consumer behavior that’s driven by smart phones and persistent digital connectivity everywhere we go whether we’re in our cars or in a store and that’s changing behavior and it’s changing the way we engage with businesses so we’re moving out of a phase where businesses are saying is this a mass-market phenomenon should we pay attention I think the business case for mobile has been made and now the questions we’re getting from Google’s customers are largely about how do I invest in mobile what kinds of things should I do from an infrastructure perspective from an organizational perspective and from a media perspective so the PlayBook is about trying to help them with that so obviously this is beneficial to Google’s own mobile ad business give us a sense of how the mobile display ad business is doing compared to the mobile search ad business which we know is where the bulk of the money continues to come from how is the balance shifting well we don’t break out the two and they’re both businesses that in their own right are doing quite well although it’s very early I think they’re both driven by the same fundamental phenomenon which is that we’re all using our phones more with the display world what you see is you see people spending a lot of time in apps being entertained and and on the web trying to solve problems and ultimately that’s a very engaged customer with touchscreens and local behavior that’s a great opportunity to drive a display advertising experience I think search is well understood that people are trying to solve problems especially local problems on mobile and so there are two distinct businesses sold usually to solve different kinds of problems but they’re both doing quite well in their own right right and as I mentioned you know cliques are going up dramatically but the cost per click is going down because of mobile so it’s kind of a catch-22 for it for you guys I mean when do you see the gap closing when do you see mobile catching up to desktop well I think fundamentally it’s about are you creating value for a marketer to engage with a consumer and I think a lot of those marketers are having to be educated on how you engage that consumer or what kinds of things the mobile consumer wants to do on the go but with the traffic growing and with the opportunity to drive someone into a store or to drive someone out of the store as they learn more about the product they’re gonna want to buy or some place else to buy it we are creating value I think the effort is broadly to educate the marketers on how to take advantage of this medium but it’s early days and it’s been very good let’s talk a little bit about the competition you know we talked about apples blowout earnings earlier in the show apples I had those one thing the company hasn’t seemed to have gotten right yet how are they doing so far from your perspective are they making headway well I think we’re less focused on how apples doing and more focused on the market in the market growth and working with agencies and advertisers to drive something that delivers value on their marketing spend there’s more competition out there you know Apple absolutely Facebook millennial media there’s more companies trying to do what you do how does Google differentiate itself well I think it’s early days in the market as a whole I think you named a bunch of players but there’s also a broad range of people who are innovating building specifically for this platform as always I don’t think this is specific to mobile Google is trying to differentiate based on our ability to target our ability to track and our ability to deliver an audience that’s in a certain mind frame right and so if we do a good job at that we know that we’re gonna create value for the advertiser we’re less focused on how anybody in particular and the competitive set focuses on the space so I mentioned the f-word Facebook obviously Facebook you know just a couple of months ago sort of revealed more plans about its mobile ad strategy the IPO is coming up how does Google sort of prepare for Facebook’s expand in this area going forward I mean you have to be preparing for this well I think what we’re preparing for is a market that is learning about mobile I mean I think obviously we’re watching the way other people approach the space and learning where we can but I think fundamentally this is about a market that’s learning what works and learning how to build creative learning how to target and engage that user and I think our energy is largely being focused on the format’s the targeting and the tracking to help a consumer have an experience that adds value to their day or their we ending up in a store or whatever that is how Facebook solves that problem I don’t think is as relevant for us Google’s acquisition of Motorola Mobility does that change your job at all or how does that affect you guys you know I get that question I get a lot about Android a lot and I think what’s fun about my job is I’m completely agnostic so from a media perspective marketers don’t necessarily want to reach someone on an Android device or a Motorola devices specifically or on an Apple device what they want to do is they want to reach a user when that user is looking for a table in a restaurant or that user is researching a car standing on a car lot or when that user is considering buying one product or another and I think that’s what mobile is great for so when we try to deliver an audience or a user with intent that’s not specific to a platform or a handset manufacturer it’s more specific to the user right your device agnostic i trihard okay Jason Spiro head of Google global mobile sales thanks for joining us today on Bloomberg West we will of course keep watching this rapidly growing mobile market
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