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Page last updated at 09:58 GMT, Monday, 22 October 2012 10:58 UK

Why did Google profits go down?


Google's latest set of results have disappointed the market as profits went down by 20%.

People have blamed the cost of swallowing Motorola's mobile handset business, but technology analyst Chris Green says it also has something to do with Google's advertising and mobile audience strategy.

"It's true that advertiser's won't put a premium on mobile advertising," says Mr Green, "but as yet, Google hasn't really monitised it's massive mobile audience, so it's not even tapping into mobile advertising at a non-premium price."

Paul Kedrosky, a Silicon Valley venture capitalist, agrees. "It had mostly to do with weakening results in advertising and then a big hit to their earnings from their Motorola acquisition."

Mr Kedrosky also explained to business presenter Simon Jack that "being a dominant market player does not guarantee future-proofing from competition from new upstarts."

"Google was an upstart and it waved gleefully at Yahoo as it sailed past it."

Mr Green added that the bigger threat to Google is the "changing way that people look for information".

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