In the age of mobile Internet, users are getting smarter

In the mobile internet age, users are becoming smarter and less willing to click on ads that appear on their mobile devices, which poses an increasing challenge to internet giants such as Facebook and Google, which are trying to make money from mobile advertising, the Daily Telegraph Web page wrote recently.

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No short-term benefits

Now, more and more consumers are abandoning PCs and switching to mobile phones and computers, and every big internet company, like a fallen domino, has to succumb to the pressure of this new trend.

The first is Microsoft, the software giant, which released disappointing earnings last week and again confirms the view that its tablet is still unpopular with users. In addition to Microsoft, Facebook, Intel and Google all said last week that it was a huge challenge for them to make money on small-screen ads.

In the era of mobile advertising, the most successful brands are Twitter and Instagram, which are still advertising-excluded companies. The bad news for Google is that, by some measures, the core business that builds its success is not as efficient as advertisers had previously imagined.

An academic study found that brand advertising in Internet search does not have "any short-term benefits", and that "returns from all the keywords are merely bucket of conventional estimates". Byron Sharp, a marketing professor at the University of South Australia, Bayron Sharp said, "Google will not like this conclusion." ”

Hard to pinpoint

The study, implemented by three people such as Thomas Black Thomas Blake, Chris Nosk (Chris Nosko) and Stephen Tadelis (Steven tadelis), found that users are becoming more familiar with the internet and how to steer clear of advertising. "New and infrequently-used users will be affected by advertising, but the purchase behavior of existing high IQ users will not be affected by paid search," the report says. ”

Because many of the site's operations rely mainly on advertising revenue support, as more and more advertising budget flow to the mobile end, the days of internet companies will become increasingly sad.

In fact, only Apple and Samsung have made a full profit in the transition to the mobile sector. But the two companies are hardware makers, and the business model is fundamentally different from Google's. At the same time, Facebook is seeking to encourage more users to watch product ads, but it is increasingly being criticized for their lack of interest.

The attractiveness of a site is bound to drop quickly if a married couple sees a business ad that a lawyer who specializes in divorce matters, or some big brands find that their ads are placed with groups that abuse women. This highlights not only the challenges of all online advertising, but also the difficulties that brands face in adapting to mobile advertising quickly.

Why Microsoft is struggling

Microsoft's current dilemma is due to a seemingly courageous, but foolish, decision. After Windows 7 was released, Microsoft realised that the rapid rise of Apple meant that more and more users would use the tablet as a major mobile device. So Microsoft decided to let the next generation of Windows system run smoothly on both tablets and PCs.

Many commentators believe that even with this goal, Microsoft is still unable to pose a real threat to Apple and Samsung. This is why Microsoft has lost 900 million of billions of dollars in last quarter's earnings because of the weak surface tablet business. Microsoft had hoped, with the help of the surface tablet, to play a turnaround in the mobile product market. But so far, the Windows 8 operating system has not proved that it can help Microsoft achieve this goal, nor has it failed to stop the decline in PC sales. Some analysts are now worried that Microsoft's overall strategy will suffer a severe blow.

Google's breakthrough

Google's earnings last week sent two important messages to the outside world: it remains the dominant force in the Internet industry, and the second is that it still has no real rivals. Google's Android system has now become the operating platform for most mobile devices. Google says Android devices will continue to push up the flow of its services. Despite the impressive performance of the Android platform in the mobile market, Google has struggled to find a breakthrough in the mobile world to increase the number of Pay-per-click ads.

Google's design products look more concise and stylish, and there is no room for unwelcome advertising. This strategy may continue to solidify Google's dominance in the mobile OS market, but it will not increase its profits. At the NYSE, Google's share price fell last week as it was less than expected in the second quarter, and it now seems less likely to break through the 1000-dollar psychological hurdle, but investors still believe Google's profits will continue to rise thanks to innovative products such as driverless cars and Google glasses.