Tuesday, August 9, 2016

Google profits from switch to mobile devices

TOPICS: Advertising
SUMMARY: Google parent Alphabet said quarterly profit soared 24%, the second internet giant in two days to report blockbuster earnings driven by consumers' rapid shift to mobile devices.
CLASSROOM APPLICATION: Students can evaluate the effect of the rise in smartphones on Google's revenues from click ads. The increase in the use of smartphones has increased the demand for click ads, which in turn has increased Google's revenues from click ads. Instructors can emphasize the point that a new technology, smartphones, has increased the demand for a product, click advertising.
QUESTIONS: 
1. (Advanced) What is the effect of the rise of smartphones on internet use? What is the effect of the rise in internet use on click advertising?

2. (Introductory) Why are companies increasingly willing to advertise on smartphones?

3. (Advanced) Why has Google in particular benefited from the rise of smartphones?
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