With the 10-year anniversary of Google Inc (NASDAQ:GOOGL)’s IPO upon us today, analyst James Cakmak of Telsey Advisory Group discussed on CNBC last night some of the ways in which Google Inc (NASDAQ:GOOGL) will need to innovate in the coming decade to enjoy the success they’ve experienced throughout the past one.
“[…] As we look forward to the next 10 years, we think it’s going to continue to be a dominant player in search, but the question is ‘what will that search experience look like’, and to us, the next stage of growth is all about the cloud. You know as more users use Google services, they can leverage that data, use the cloud, use machine learning, and be in a constant state of innovation to improve that search experience […],” Cakmak said.
While Cakmak concedes that Google Inc (NASDAQ:GOOGL) is now far more than just a mere web search company, he believes their forays into other ventures and verticals, including shopping, still have an eye on gathering user data and improving their core search experience.
One challenge Google Inc (NASDAQ:GOOGL) will face in the coming decade is its ability to maintain ad prices in an ecosystem of increasing mobile viewership that has yet to provide the same traction for ads that desktop users do. Cakmak considers that can change, however, as Google Inc (NASDAQ:GOOGL)’s search techniques develop and become even more targeted and sophisticated.
“What you’ve seen on mobile has been a constant pressure to the cost-per-click metric they report on a quarterly basis, but the fact of the matter is, as search does become more sophisticated and they are able to leverage the data on a geo-targetted basis on mobile, we do think the pricing can actually converge with desktop and where it is today,” Cakmak said.