While Google announced strong fourth quarter earnings with stocks rising from last week's 5 percent dip, the company is yet to figure out a way to make profits from their mobile devices.
Recently Google saw a decline in their most lucrative business, the desktop search engie. While the giant company has entered into the mobile world, they have not been making much of a profit from their mobile devices.
"You would expect Google to be a key player benefiting from mobile, but that hasn't played out in the last year," said Jordan Rohan, a Stifel Nicolaus analyst.
Google's CPC (cost per click) which is calculated on the bases of every click an ad gets, decreased by 6 percent in the fourth quarter last year, the fifth time the number fell over the last five years.
The main reason for the dip is advertisers tend to pay less for mobile ads and more for desktop ads. However, currently people are browsing through Google more on their mobile devices and less on computer desktops.
"We're in some uncharted territory because of the rapid rate of change in these things, but I'm very optimistic about it," said Larry Page, Google's chief executive, on a conference call with analysts after the earnings were announced. "I think the C.P.C.'s will improve as the devices improve, as well."
According to The New York Times, the company reported fourth-quarter revenue of $14.42 billion, which was a 36 percent increase compared to last year's fourth quarter earnings.
"Despite talk about retail having a weak season, Google's product listing ad program has taken off quite successfully," said Sid Shah, director of business analytics at Adobe, which handles $2 billion in annual advertising spending.
