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Google Profits Dented By Global Exchange Rates

Global Marketing News – 22nd July 2015

Google profits dented by global exchange rates

Google’s quarterly revenues have increased by 11% compared to the same period last year, reaching almost 18 billion US dollars.

Advertising revenue accounted for 16 billion US dollars.

The average cost-per-click has fallen slightly, with increases in the numbers of ads viewed on YouTube and mobile devices thought to be behind the fall in ad prices.

Profits have been maintained, however, because of an increase in the overall number of ads.

A Google spokesperson has said that revenues could have been up to 1.1 billion US dollars higher if exchange rates had been different. The relative strength of the US dollar means that profits Google made in weaker currencies have been lower than they otherwise would have been.

One place where Google is looking to improve its profits is in its Android app store Google Play.

A recent report by App Annie shows that although Google Play is the leading app store in terms of downloads, its rival Apple App Store is still in front in terms of revenue.

In the last quarter, there were around 85% more downloads from Google Play than the Apple App Store, a significant increase from its 70% lead at the beginning of the year.

The boost in downloads has largely been attributed to the rapidly increasing number of smartphones in developing countries, the majority of which run on Google’s Android operating system.

The Apple App Store generated 70% more revenue than Google Play, however, a trend that has remained steady from the beginning of the year. This has been put down to Apple’s dominance in more developed, lucrative markets such as the US.

Delivery options are important to majority of Swedes

A study by PostNord has revealed that three-quarters of online shoppers in Sweden think it is important to be able to choose their delivery method.

The preferred delivery option in Sweden was to pick up the product from a post office or service point, with 48% of respondents saying this was their first choice.

Having the product dropped off in their mailbox was the second most popular option, with just under a third of respondents saying this was their preferred option.

Having the product delivered to the person’s home was the third most popular option.

Swedes were willing to wait up to 3.9 days for their items to arrive, a reduction from the 4.3 days people said were willing to wait when they were questioned last year.

Ramadan sees change in ecommerce habits in Middle East

The Muslim holy month of Ramadan has been accompanied by a change of ecommerce habits in the Middle East.

Research by Criteo has revealed a 23% increase in ecommerce sales this Ramadan, as well as a 42% increase in online travel bookings, as Muslims prepare of the post-Ramadan Eid holidays.

Unsurprisingly, during Ramadan, where Muslims fast throughout the day and eat with the family during the night, people shop more during the night-time.

Nocturnal online shopping increased by 35% throughout the holy month. Cooking gadgets such as rice cookers and blenders also saw increases in popularity during at this time.

The Middle East is the fastest growing region in the world for online shopping, with a 30% year-on-year increase, compared to a global average increase of 17%.

WeChat “glitch” blocks all mentions of rival Uber

And finally, a so-called technical glitch meant that searching for the word “Uber” in the Chinese social network WeChat brought up zero results.

Furthermore, when a user posted content that mentioned Uber, it would appear when they looked at their own timeline, but would be invisible to all other users.

WeChat blamed it on a technical issue and said it was fixing the problem, but many commentators have expressed their scepticism, saying that they considered it a deliberate act of censorship.

WeChat’s parent company Tencent has invested a large amount of money in Uber’s main rival in China, Didi Kuaidi.

Webcertain’s global marketing news bulletins are daily 5-minute videos, providing marketers with the latest international digital marketing news in an easy-to-digest format.

Elin Box

Elin Box

Marketing Assistant at Webcertain
Elin is a Marketing Assistant at Webcertain. With two years editorial experience, she edits and writes content for Webcertain and provides support on a wide range of the Group's marketing activities. She is part of the Webcertain TV news team, curating stories and writing news bulletins. She also has experience in international SEO and has managed a small group of international copywriters and provided support for multilingual link building projects.

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