Dive Brief:
- According to a report from eMarketer, the use of mobile apps over browsers will significantly affect Google's mobile paid search revenue.
- The report predicts Google's share of mobile Internet search revenue will fall from 89.2% to 64.2% by 2016.
- Users access mobile apps more often than Google's browser and mobile apps have alternative streams of revenue that are taking bigger parts of the pie.
Dive Insight:
Mobile is shifting a lot of markets as people continue to use it in different ways. If Google wants to reduce the loss of revenue, it will have to find alternative routes to the mobile browser. While the loss of prominence is bad news for Google, it could be good news for the market overall. A less powerful Google means more opportunity for other firms to drive innovation.