Google Inc (NASDAQ:GOOGL) has a plethora of projects currently in works. Among other things, the organization is operating self-driving cars and internet balloons. However, Google is a search and ads firm at its core which accounts for around 90% of its revenue.
Today Facebook Inc (NASDAQ:FB) rolled out an enticing new ad buying option for marketers that lets its video ads compete more effectively with YouTube’s.
On Monday Microsoft Corporation (NASDAQ:MSFT) declared that Bing will take up search and advertising for AOL, Inc. (NYSE:AOL), keeping Google out for at least the next decade. Pinterest also launched its first buyable pins as part of its aim to become a potent visual search and discovery engine.
None of these developments immediately damage Google significantly. The dropping of the AOL deal means Google won’t be making tens of millions dollars every few months. The loss is marginal compared to the $17.26 billion revenue Google earned last quarter. Although Facebook is attracting more video ad dollars, YouTube is a giant and well-established venture. Pinterest’s ad products are not yet established, and Google is soon introducing its own “Buy” button also.
However, the little damages are adding up. Amazon.com, Inc. (NASDAQ:AMZN) has been pulling product searches away from Google for a long time now. The loss of the AOL deal happened less than a year subsequent to Mozilla let go Google search for Yahoo! Inc. (NASDAQ:YHOO), sparking the former’s biggest decline in search market share since 2009.
Currently, Google is the default search for Apple Inc. (NASDAQ:AAPL)’s Safari browser. However, there’s been speculation that Apple could drop it for Yahoo or Bing. Apple intends to block ads in Safari on mobile with its next iOS update at a juncture when adblockers are causing a loss of 10% of Google annual revenue.
Also at present, the amount Google gets each time people click on its ads continues to decrease and altogether its growth was less than anticipated last year. Rather than having solid growth, Google’s main business is growing at a snail’s pace just when competitors are cutting away at it.