Google announced during their conference that ads will soon be popping up on their homepage.
These ads will only be seen on mobile devices and later this year on their smartphone app. This will give the giant company a great avenue for increasing their revenue by selling brands through improved advertising.
They did say their current traditional standard look for desktops will remain the same for the time being. They will also have a platform for ads that will display approximately 8 images in search results. All new updates will be available for everyone worldwide.
All these changes are answering questions regarding their business model which seems to be falling behind both Amazon and Facebook’s push for greater sales and giving consumers better ways to search and purchase products.
According to their vice president, the announcement regarding these changes has nothing to do with their competition but giving consumers a better avenue for finding information and products they are looking for.
The ads in search are meant to create better results for users. Google also believes that people are more likely to click on ads that have images and that means better search results.
That said, these ads are essential for the company positioning themselves in collective awareness as the company focuses on all different products such as self-driving cars to new AI products and services.
The company will still depend on their traditional operations to increase these advancements through their standard advertisements. Google also stated they get approximately 85% of their profits from ads. That said, the first quarter showed sales were way down which is having an impact on the price of their stock.
Only time will tell how this will all play out but it seems to be a good move for Google to increase their revenue, drive more users back to Google and give their competition something to think about. We will all have to just stay tuned for the next round and see what Google pulls out the hat for their traditional look for desktops.