Continuing growth in Google's advertising business helped increase its fourth-quarter revenue by 36 percent from the previous year. The company, however, saw a 6 percent decline in the cost of paid clicks, the money it charges when someone clicks on an ad, which puts pressure on the company to boost advertising and clicks in new growth markets such as mobile.
Certain decisions by Google including its clubbing of tablets with desktops for the new program may not find favor with advertisers, analysts said.
"Advertisers can no longer create separate campaigns for desktop, smartphone and tablet targeting, but will instead be able to add a mobile modifier at the campaign level to modify bids on smartphone traffic," said Bill Mungovan, a director of product marketing and strategy for Media & Advertising Solutions at Adobe, in a blog post. "Google has made a clear statement to its advertisers: tablets aren't mobile. But they've taken it a step further and effectively said that tablets are desktops." As cost-per-clicks are currently lower on tablets than on desktops, revenue-per-search for Google will go up as it will now be calculated on combined tablets and desktop traffic, he added.