SWOT Analysis : Honor 8

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On 12 Oct 2016 Honor launched its flagship phone Honor 8 in Indian market with a big launching party.
The phone was initially launched in International market in July 2016. Now these things have been already discussed and since I’m not a Tech-Guy so lets come to my part i.e. Marketing. So I have a done a small SWOT analysis on Honor8 and somewhat Honor Brand too.

Strength:
– Honor is backed up a big Techno Company we all know Huawei, and many of you don’t know Huawei holds 3rd place when it comes in market share of Smartphones.
– Honor 8 comes with some of the unique features you would have ever seen in other phones such as :
o Slick body of the Honor 8 is made with heavy 2.5D glass on front screen and back surface, finished aluminum alloy, and ultra-narrow bezel design.
o 15 layer craftsmanship and light catching glass finish
o Dual camera
o Hybrid Autofocus Sensor
o NFC and latest figure print sensor
o Further details can be found here: https://store.hihonor.com/in/honor-8 you can purchase the devise from here too
– The device comes in a handy price of Rs .29999 which is good for the features this phone is providing. Earlier posts on this community by experts prove that Honor 8 is better than than its riva such as OP3, Iphone, Samsung S7
– Basically the phone’s strength is its unique feature.
– Recent setup of production house at Chennai will boost its sale as apart of #MakeInIndia concept.
– Strong Online community forum support.
– Frequent contests and offers to promote Brand.
– Unique EMUI

Weakness:
– Single Slot Nano-sim (Boom where did that came from, when people will be spending 30k and won’t get dual SIM, they will definitely think twice as almost every phone be it feature or smartphone comes with dual SIM concept.)
– The size of screen is 5.2” which has been followed from likes of Honor 5C, Honor 7.
– Honor brand lacks in field of advertisement and that is the reason many people still don’t recognize honor. (We saw just one print media advt. of Honor7, before that no advt. for any handset wasn’t done. However Company has started TV ads, newspaper ads, etc this time to promote Honor 8. Hope that it continues.
– Availability on online stores and very less offline presence. (Still many people hesitate from purchasing electronic goods online, they will compare/see features online but buy offline and here honor get a set-back as it is not easily available offline in stores.
– Honor brand is launching its models rapidly as it was last year Honor 4x was launched then came 5x, Honor5c and then Honor7, Holly Plus2 now Honor 8 and Holly 3. Its good but every Phone should get time to establish itself in the market. As everyone will not purchase 20k-30k phone but many go for 10k-15k phones so Honor needs to keep highlighting its small budgets phone too in regular interval.
– Lack of updates for old models like Honor 4c and 4x still waiting for EMUI 4.1 confirmation. Honor 4x still waiting for VOLTE confirmation.

Opportunities:
– Retail option is still open for Honor and it is flourishing like fire, we can take example of VIVO and Oppo within short span of time they have gained lot attention as they have offline presence also.
– Celebrity endorsement
– Its Festival season try to in-cash this period
– Go for regular paper ads, Hoardings in town, sponsorship etc.
– The unique features of Honor8 as mentioned have made it superior in case of Smartphone market, Company should in-cash this moment and promote Honor brand to get Market recognition which it still lacks.

Threats:
– Honor’s competitor brand Mi is coming up with dual camera feature, and there is no doubt I has more market recognition than Honor and so it may outcast Honor.
– Indian boycotting Chinese products.
– Some angry fans posting bad against Honor on social platform doing poor mouth publicity, their grievance should be handled or they should be banned.

– Abhinav Sinha
ICFAI University Jharkhand, India

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Demonetization : Coincidences or Strategies which were planned nicely and then executed way more smartly

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There was a time when average population of India didn’t have bank accounts neither bothered to have one. Our honourable Prime Minister came with a new scheme, Pradhan Mantri Jan Dhan Yojana on 28th August 2014. Under this scheme PM declared that the account holders will be provided zero-balance bank account of ₹30,000 (to be given by LIC) ; after six months of opening of the bank account, holders can avail ₹5,000 overdraft from that account. Also with the introduction of new technology introduced by National Payments Corporation of India (NPCI), a person can transfer funds, check balance through a normal phone which was earlier limited only to smart phones etc. These features attracted the Indians a lot and as a result there were 1.5 million bank accounts opened under this scheme on its inauguration day itself and eventually it got place in the Guinness World Record book; this number didn’t stop there and by 1st June 2016, over 220 million bank accounts were opened under this scheme.

We could say, it was the beginning of a new era for India, DIGITAL INDIA, the dream of our PM.
On 28th February, there was an announcement which stated that 1% excise duty will be applicable on gold jewellery and people purchasing gold above ₹2 lac will have to show the PAN card, though the jewellers went on strike for one whole month and the result was the Government had to take back its decision.
An year ago, on 20th July 2015 when the gold prices depreciated drastically, people started panicking and started selling their gold which they kept as their reserves. It was a mere coincidence which we can say helped the government to execute the plan smoothly. Publics’ asset got liquified and they were left with high amount of cash with themselves which were mainly of the denominations of ₹500 and ₹1000.

Indians didn’t know what they could go through just a year later if they hoarded black money.
Ever since the NDA government came into power, public always questioned about their plans of bringing back the black money as the party got maximum votes on the basis of their promise of bringing back the black money to the nation.
Some may have invested in assets like land, gold, etc by this time but majority held cash with themselves.
By 31st September 2016, we had a mindset that Government has already forgotten about their promise of bringing back the Black Money. We on the other hand were unaware of the Government’s plans of exposing the Black Money Hoarders but it was just a day later, we realised that the Government is actually working as per the requirements of the country. On 1st October we got a statement by our Financial Minister Mr. Arun Jaitley stating “₹65250 crore disclosed under Income Declaration Scheme”. After this the PM again warned the citizens hoarding black money to expose it or else they will have to face the outcome. Despite the warnings most of them ignored it but just a month later, i.e. on 8th November 2016, around 6:00 p.m. (GST), a news flashed quoting, “PM Narendra Modi wants to address the nation.”
In his speech he informed the nation that the Government has withdrawn its legal tenders for the ₹500 and ₹1000 notes which would be applicable from the midnight. He has given 50 days time to the nation for getting their ₹500 and ₹1000 notes converted into the new ₹500 and ₹2000 notes issued by the RBI having the signature of our new Governor, Mr. Urijit Patel. This is basically the demonetisations of the notes of ₹500 and ₹1000. Again, there is a limit for converting the old notes into the new notes. So, now the nation is left with the next best option which is depositing their money into their bank accounts. They can deposit any amount, there is no limit for depositing the fund provided the person is showing their PAN card and the amount being deposited is justifiable. The government will keep a close look on the amounts being deposited above ₹2.5 lac in each and every account.

It is a situation which is being appreciated by the majority of the population but some are still there who want to offend this though they are helpless and can’t do anything but praise this movement with fake smiles on their faces. As if they don’t do this and oppose it, they will be exposed and neither have they got anything to say or back their statement with, for opposing this “SURGICAL STRIKE 2”, as termed by the public.

Now, if we go for joining the links we can clearly see that these were joined indirectly; making the public open their own accounts then going for imposing Excise Duty and asking for PAN cards who would purchase gold above ₹2 lacl. People who held gold already sold them because of the continuous depreciation in the cost of gold which was a mere coincidence. After this, demonetising the notes of ₹500 and ₹1000 was a step which was being backed by all the steps discussed previously in this article.
On a lighter note, the Government promised to provide ₹10 lacs in every bank accounts being opened under the Pradhan Mantri Jan Dhan Yojana and now after 2 years, ironical is the situation when people are themselves depositing this amount to their accounts; indirectly the PM redeemed his promise.

There will be appreciators and criticisers for everything, This article is not written as a supporter of BJPor other party, it is just that, being a youth of this nation, we need to support the person who is supporting and doing every possible thing for the nation.

Demonetisation of the notes of ₹500 and ₹1000 has not only helped the government to expose the black money hoarders but the concept of fake currencies have endangered the mass and it has also shown the people the right way to at least incur honest money with honest salary with honest business. Apart from this it has also helped to wipe out the fake currencies of the nation which has already entered within a span of 8 months. It is a face-palm for the terrorists crossing the LOC with fake notes.

—-
Simran Verma
ICFAI University Jharkhand, India

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ZOPPER: GIVING A NEW DIMENSION TO E-COMMERCE IN INDIA

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When we talk about E-Commerce first we need to understand what it is actually all about? It is basically about the business transactions between the buyer and the seller, but there is a twist; and that twist is none other than the revolutionary technology “Internet”. Oh yes using Internet for trading of goods and services, or transmitting of funds or data, over an electronic network, primarily the internet. These include business transactions between either of the Business-to-Business, Business-to-Consumer, Consumer-to-Consumer or Consumer-to-Business. B2B is the business transaction between business and business i.e. a manufacturer is dealing with another manufacturer (or vendor). B2C is the business transaction between Business and Consumer, normal buying from the manufacturer or the seller. C2C is the business transaction between a Consumer and another Consumer, (OLX, E-Bay); and C2B is when the Consumer is having any business transaction between him and the seller (Business).
E-commerce had always been facing a drawback in India. Here a person doesn’t really go for buying products online so often. There is a myth in consumers’ mind that online shopping is not safe. To counter this, players like Flipkart, Snapdeal etc. are making every possible effort, they are giving best deals, coupons and discounts; as a result the sector has seen 35% CAGR (from 3.8 billion USD in 2009 to 12.6 billion USD in 2013) over the past few years. (SOURCES) 6th October 2014 will always be considered as one of the best and turning point for Flipkart and Indian E-commerce. This was the first big billion day organised by Flipkart and it sold products worth INR 650Crore that too only in 10 hours. And now when people have started preferring online products, players like Zopper are coming with new and innovative ideas.
After positively crossing this “trust” hurdle, online shopping again has to face one more issue. It is also considered as a threat for offline shopping or traditional retailers. The products available online are much cheaper when compared with any of your nearby shop. Suppose you need to buy a cell phone, if you go for buying it from any retailer you would see the price difference and if you ask him for lowering the price after showing him the price at which the same is available in the online platform then even the retailer would end up saying that he can’t do anything regarding the price difference. Zopper has come up with the idea of tackling this problem by basically playing a role of a bridge for the gap between online and offline sellers.
Not a new name in the field of E-Commerce but certainly a promising name which holds all the ability to prosper in this field sooner or later “Zooper”. “Zopper” was founded by IIM graduates Neeraj Jain and Surjendu Kulia in 2010. Zopper lets you buy the best products at lowest rates. It has 2000 online and 200000 offline merchants. It lets you compare the prices and products available both online and offline. “The real difference (between Zopper and other websites) is that they have the largest catalogue (of online and offline merchants), the largest merchant listings and the widest price discovery” says the CEO, Neeraj Jain. The best thing about Zopper is that after choosing a product sold by an offline merchant, the person can contact the merchant and go to his store to see and analyse the product.
Online shopping is also showing a footfall for the offline sellers. People can get the same product at a better price online. But Zopper, as discussed earlier, is providing a stage for the offline sellers to reach a whole new lot of consumers. Here they go for giving discounts, deals etc. to attract the consumer. Even they go below the margin in which the product is supposed to be sold at. But at the end they make profit enormously. That is all about their price mechanism.
Zopper is also giving a facility of the product to be installed at your home and 10 days guaranteed return policy after the installation of the product if the consumer finds something wrong with the product.
So, overall Zopper is trying to counter as much problems as it can. If given a right direction with right amount of publicity it can stand among one of top amongst the E-Commerce sites.

Simran Verma
ICFAI University, Jharkhand

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Pass Pass Pulse Candy – The Success Story

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You never know which step of your will change your destiny, Pulse candy has been the same step for DS Group (Dharmpal Satyapal Group). Pulse was launched in 2015 and with its launch it caught the attention of every segment of the society, and thus it gave a serious headache to many marketers. Candy industry lacks loyalty of the customers and this industry has behavior of impulsive purchase. But Pulse was the exception in this case, many people got addicted to it and it was purchased on premium.
In an industry where brand loyalty is not seen Pulse candy changed the total concept and perception of people. This can be seen from the fact that the brand generated revenue of Rs. 100 Crores in the first eight months of its launch.
Lets focus on some of the Key Facts of The Pulse Candy:
• It is a Dharmpal Satyapal Group product, popularly known as DS Group, who are also the makers of the Rajnigandha, Catch Spices and Pass Pass mouth freshners.
• The product was initially released in three state namely Rajasthan, Gujrat and Delhi.
• It earned revenue of Rs 100 Crore in first eight months and equaled the record of Coke Zero.
• Company spent two years for R&D of the product, as it was merely a concept in 2013 and the after 2yrs of research and development was launched in early 2015.
• Company didn’t spent any amount on the advertisement and promotion of Pass Pass Pulse Candy, it gained its popularity by Word of Mouth Publicity.
• In its beginning stage, the company couldn’t meet the demand of its customer and was just able to meet only 60-70% of the explosive demand, and so people were ready even to pay premium for it.
• Looking at the success of its Kachha Aam flavor company launched its second flavor Guava Flavor with a tangy twist.
• There are other candies in this segment like Parle’s Golgappa, Perfetti’s Alpenliebe Fruitfillz (Mango and Orange)
Success factors for Pulse Candy –
• Strong Distribution Channel: Distribution channel plays a vital role in development of any FMCG product. If the product’s reach and visibility to the customer is high then its chances of being accepted is also high. And as we know DS Group already has a strong distribution channel due to its product like Rajnigandha (70% market share) and Pass Pass, Pulse is available from a Kirana store to a small bettle shop, from urban to rural area.
• Money Valuation: Although we may find many leading firms selling candies at half price (Re. 0.5) what Pulse is charging (Re 1), but Pulse has justified its pricing strategy by increasing the weight to 4gm where the industry standard is 2.5gm. The taste which it provided was dual (sweet and sour), all this made sure people value for the money.
• Right Product: DS Group came up with a perfect product after extensive R&D. Company found that Raw mango or Kachha Aam is consumed by all age groups in India as a result it will maximize the chances of its success. The USP of this product was the element of surprise which was added to the candy which changes its taste from sweet to sour.
• Attractive packaging: In candy industry most purchases are made impulsively and lacks brand loyalty, hence packaging plays an important role in attracting customers. The bright color packaging of Pulse not only ensured its visibility but also forced customers to try the candy at least once.
• Word of Mouth Publicity: It is one of the most cost efficient and effective way of promoting any product. As said before DS Group didn’t spend any cost on its advertising, whatever promotion Pulse got was due to word of mouth publicity.
Earning 100crores in the first eight months of launching that too without spending cost on advertising and promotion. Some people may find this an unimaginable task that too for a candy of price Re.1. But Pulse has also proved that with extensive R&D anything is possible in the field of marketing and that if your product is great you don’t need to advertise for it.

Abhinav Sinha
ICFAI University Jharkahnd

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Business concept : CAMPUS CAB SERVICE

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I am honored to present a Business concept called “CAMPUS CAB SERVICE” Tagline : PICK YOUR OWN WAY

INTRODUCTION
There are some of the transporting services available in Ranchi who provide good comfort in transportation. These services have upper hand in the business market nowadays. They have set a benchmark in the market today and has n number of customers who find these services comfortable and very helpful.
Remain in touch, wherever in the world we go, let geography be history!

IDEA BEHIND
• This is a cab service provided and specially to all. But, specially to the students of any field or age.
• We will provide this service to all people, not only confined to students but the idea is to specially target the students. They get this service on their fingertips to reach their destination safely at any point of time.
• Students will find our services pretty helpful as we have seen there are number of students who find problems in travelling. We are here to solve them by the best as possible.
• In a survey, it is found that 45% of India’s population is below 25 years of age. So, this is the population where maximum number of students we can get.
• They always find such service providers who are nominal, adaptive, cool, comfortable and safe to travel.

SPECIFICATION (HOSPITALITY)
• To our specification, we will provide campus mini, campus sedan and campus XUV.
• The customer can track our service from the point the cab is been booked.
• A setup GPS and navigation is available with every cab.
• A free WI-FI network connection will be available to the customers.
• For relaxing, mineral water bottles will also be available.
• We will appoint the service providers of minimum driving experience of 3 Years.
• We will also recruit female driver if a female customer wishes to go with female driver.

TARIFF PLAN (POINT TO POINT)
• For Campus mini, first 3 Km charges would be Rs 39/- and after 3 km Rs 8.49/- per km.
• For campus sedan, first 3 km charges will be Rs 48/- and after 3 km Rs 9.99/-
• For campus XUV, first 3 Km charges would be Rs 54/- and after 3 km Rs 10.49/-
• No ride holding charges until 10 minutes but after that Rs 0.99/min will be charged.

CAMPUS ADVANTAGES
• The first 5 km of a consumer availing our service for the first time will be free of cost.
• 10 %Discount is made on the basis of regular membership and the students having official identity cards issued by their particular institutions.
• Students and others can issue their campus card to enjoy their ride and earn points for the discount.
• This service will be available 24*7*365 days.
• Recruiting female driver.

THE REVEUE INVOLVED
• For a campus mini,
This is the example of our revenue generated if a customer travels for minimum 6 km/day.
Present price of a diesel in Ranchi= Rs. 54
Mileage of the Campus Mini=18km/litre.
Now, Rs. 54 will be covered in travelling 18 km.
Hence, Cost of travelling 6 km in mini=Rs (39+8.49*3)
Rs (39+25.47)
Rs 64.47.
So, for up and down of a campus mini will cost us Rs 64/-
i.e., for 12km, our expense will be Rs 64.47.
Now again, travelling next 6 km will cost us Rs 32.
So, travelling 18 km, total cost= Rs (64+32)
Rs 96/-
Revenue=Rs (96-54)
Rs 42/-
We will take it as Rs 30/-
Now we target to get at least 25 customers a day.
again, Rs (25*30)
Rs 750/-
As a result, we will profit Rs 750/- with a Campus Mini Customer in a day.

GOALS (TARGET)
• As such, this would be a Low profit making company. We want to serve people in the best way.
• We are targeting for at least 50 customers a day where 50% customers of campus mini, 40% customers of campus sedan and 10% customers of campus XUV.
• We will cover the market slowly by marketing ourselves on fullest level. The strong marketing can be done through our Penetration Pricing.
• If our strategy becomes successful, we are hopeful to achieve our target by 6 months.

—-

Abhishek Kumar Tripathy

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5 Ways by which a Medium – Small business owners can increase or improve Customer Retention

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A medium/small business success depends upon basic things like its willingness to grow and their customers. In today’s competitive era customers play a vital role in growth of the business. Be it a grocery store, medical store or a vegetable shop it is needed that the customer always get they need. Here are five measures which ensure your customers coming back to you:
1. Loyalty benefits.
Customers who are regular will surely deserve something special, so that they can feel different among other customers. Relationships should be build with the regular ones by offering them something that is only available to the top of the customers. This will compel them to share their status with other with other people they know. Special referral schemes can be added to customer’s interest to increase the business. E.g. – Regularly using OLA cabs provide customers with certain perks like upgrade in their rides, cash back coupons, discount coupons etc.
2. Offer Promotions
As the business grows, it can be noticed that your products and services are in demand. Regular customers can be noticed. Now these regular ones can be the best word of mouth for your business. Certain benefits or offers should be given to them on the products they frequently buy to make relationship stronger. E.g. – New online grocery and vegetable portals offer lesser [rice than the market and more offers than what we get in shops.
3. Support of the Employee
Employees are the one who sell the products and explains the services provided by the business. It should be made sure that all the employees are well trained, their communication is good be it face to face, tele-calling or email support. People facing the customers should be perfect as unhappy or shy employee can be bad for growth of the business. If any customer remains dissatisfied due to these reasons the he/she/it can quickly share their view points with other and spoil your image. E.g. – Employees at the banks are best example of it. They deal with different types of customer everyday yet remain calm and explain everything to them and clarify their doubts.
4. Questioning your Customer
The best way to know what our customer needs is by cross questioning them. Surveying customers on your product/service as well as what customers expect from our business will be the best way to know what customers think about our products/services and further what do they expect more from us. If we know what they need or want from business enables us to prepare us for future. E.g. – If you have ever used freecharge, snapdeal or anyother e-shopping portal after the purchase you must have received a feedback form by them, enquiring about the experience of shopping with them and other stuffs.
5. Utilizing the Social Media
Not to say, but today every business is focused on using social media as their marketing platform. It may be a Super-Mall to MNC or Retail outlet to a online shopping portal. Social Media is a fast and convenient way of staying in contact of the customer for their feedback, support to placing the orders. Customers can come to know about the new offers provided by our business; they can even write reviews regarding their experience with our product/services. In case any negative review is placed, it can be handled their only.

Abhinav Sinha

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Amazon posts surprise profits

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  • Amazon wowed Wall Street Thursday with a report of $25.36 billion in revenue, sailing past the $24.91 billion in revenue expected by analysts from Thomson Reuters. The e-retail giant made $79 million in Q3, 17 cents per share, compared to an expected loss of 13 cents per share. Shares surged 10% in after-hours trading on the news.
  • Analysts had been expecting Amazon to improve by posting a smaller loss year over year, and its share price soared on the profit performance. There are other signs that Amazon is doing well, including its announcement this week that it would hire many more holiday workers this year, bucking the trend among other retailers that are keeping holiday steady with last year.
  • Amazon’s Q3 results continued the pattern of the company benefiting greatly from its AWS cloud services, which had operating income of $521 million, five times what it was in Q3 2014.
  • Amazon is finally demonstrating what its patient investors have been waiting for: a pattern of consistent growth and profit.
  • The stock rise is a vote of confidence in Amazon’s potential. There are a few essential reasons for that potential, but two basic ones are: the strength of its cloud computing business and the vast potential of global e-commerce. That market totaled $1.32 trillion last year, according to eMarketer, with 21% growth yet this year and more expected in the future.
  • Amazon’s tilt toward innovation has helped keep its investors patient. Even when it sees failures, like its ill-fated Fire phone, the company pivots without becoming tech or innovation-shy.
  • It’s hard not to compare Amazon’s fortunes to those of Wal-Mart, which by contrast in recent weeks has seen its stock tumble amid concerns that it will take more work and money to clean up its inventory, stores, and e-commerce than it can handle or that may be possible to jump-start growth.
  • Others have noted that an improving economy has both workers and customers leaving Wal-Mart for better jobs or more enticing retail environments.
  • Meanwhile some analysts have pointed out that because Wal-Mart is such a huge company it could have reached a sort of plateau—while there are profits to be had, growth is a tall order.
  • While a down economy may help make Wal-Mart’s customers sticky, that may fizzle somewhat, while Amazon has its benefit-laden Prime program, whose less-fickle members have now become nearly half of its U.S. customer base. Prime members spend $1,200 there each year on average, while non-Prime customers spend $700, and Amazon has been working hard — throwing a Prime Day sale mid-summer amid other ways to sign up new trial memberships — to collect new ones.
  • “Amazon is a virtual marketplace that’s kind of like an infinite shopping mall — you can get with one click anything you want to buy,” Columbia University business school professor of retail studies Mark Cohen told Retail Dive earlier this year. “It’s an organization that almost never screws anything up. … And when they do, within two minutes on the phone they apologize and make it about as easy as you can get to make it right.”
  • But Amazon’s reliance on its cloud-computing business could eventually face stiff competition. Microsoft Thursday alsoreported big gains in its cloud-computing business, and Wal-Mart took aim at Amazon last week with its announcement that its technology arm, WalmartLabs, will soon open its OneOps cloud-storage solution to the public, making it easier to move data between cloud systems.

Courtesy – http://www.retaildive.com/

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Alphabet (formerly Google) beats on earnings, thanks to mobile search and programmatic advertisement growth

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Dive Brief:

  • Google parent company Alphabet, Inc. posted strong third-quarter earnings on Thursday that beat analyst expectations and sent the company’s shares to record highs in extended trading.
  • Driven by strong growth in mobile search and programmatic ads, overall Q3 revenue for the company rose 13% over the same period last year. Google also reported that the overall number of paid clicks rose 23%, but cost-per-click fell 11% for the quarter.
  • During an earnings call with analysts, Google CEO Sundar Pichai told investors he was confident in Google’s ability to deliver ads to people at relevant moments, adding that he anticipates mobile search ads might become “as compelling or even better than desktop.”

Dive Insight:

“Our value proposition to markets of all sizes is simple,” Google’s Pichai said on the earnings call. “Google can help you show the right ads to the right people at the right moment.”

The main takeaways from Alphabet’s earnings report are clear: Google’s bread and butter — search ads — are proving effective on mobile.

However, analysts have been worried of late that the unintended consequence of mobile growth is a decline in cost-per-click, which fell 11% this quarter. It looks like those worries may have misplaced, as CFO Ruth Porat attributed the drop in cost-per-click to the growth of YouTube TrueView ads, Google’s skippable pre-roll ad offering.

Porat noted during the call that both TrueView ads and Google Preferred, which allows brands to buy ads on top YouTube channels, have seen significant growth. Pichai called video “a profound media shift” and said that advertisers have been very responsive. “We are getting great traction there…[as brands are] moving traditional budgets to YouTube,” he said.

Programmatic ads are an area of growth for Google that is “on fire,” according to Pichai. Programmatic ad revenue has nearly doubled in the past year, with 80% of the top 100 advertisers buying ads programmatically from Google.

One more thing to note for marketers is that Google says it isn’t worried about ad blocking, though it did acknowledge that, as an industry, they need to work on poor ad experiences.

The better-than-expected earnings come at a time of transition for the Internet behemoth, which is going through a restructuring under the newly created holding company Alphabet. All the core Internet businesses — search, advertising, maps, YouTube and Android — will remain part of Google under the new company structure.

“They’re in a great position in the overall advertising space, whether it’s search, display or mobile. They’ve got the right program to continue to grow at a solid pace and be dominant in those spaces,” Kerry Rice, a Needham & Co analyst, told Reuters.

This quarter marks the first earnings report for the new Alphabet parent company and the last before the Internet businesses start reporting separately under Google.

P.C. – http://www.marketingdive.com/

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