Anyone Take Note Of This?: Here's Why Google Could Disappear in Five Years
 

http://www.cnbc.com/id/49477730


"Google may be on its way out as the dominant player in search, according to one analyst ? and could even "disappear" in as little as five to eight years if the competitive pressures that ultimately claimed other search giants start to take root.

In the wake of a surprisingly weak earnings report, Eric Jackson, Ironfire capital founder and managing member, said Google Google [GOOG 661.15 -6.82 (-1.02%) ] could easily find itself fending off the woes that eventually took hold at embattled Yahoo! [YHOO 18.755 0.185 (+1%) ].

"They could disappear in five to eight years and disappear in the sense that Yahoo used to be the king of search. Now, for all intents and purposes, Yahoo has disappeared," Jackson said Thursday on CNBC's "Squawk on the Street".

The primary reason Google may lose its search dominance is because the company is facing the same mobile problem as Facebook [FB 25.94 1.942 (+8.09%) ], Jackson said. (Read More: Google Has the Same Mobile-Ad Problem as Facebook)

"If Facebook saw a deceleration in their sales and their growth lead to a halving of their stock price...why wouldn't it also be something that is very negative for Google as it continues to play out?" he said.

Google reported in its quarterly earnings, which were released Wednesday, that its cost per click (CPC) was down 15 percent in the third quarter.

While the company reported that ad sales had increased, it is likely that CPCs will continue to decrease, Jackson said.

The reason? Consumers are searching more and more on mobile devices, yet advertisers aren't as willing to buy advertisements formatted for mobile devices, because these ads are not as prominently displayed.

Also, mobile ads tend to run more cheaply than ads made for desktop computers.

"Obviously, everyone is focusing on CPC...Profitability is way down for five quarters now, for Google, quarter after quarter. Paid clicks, the rate of growth is slowing," Jackson said. "We're facing a scenario, where I think in a couple of years, we might hit peak search."

The rise of mobile will lead consumers to want to search in new ways, which may open the door for others to enter the search space. The number one contender may just be Apple [AAPL 589.53 18.03 (+3.15%) ] ? one of Google's fiercest competitors, he said.

"I think that there is a big opportunity right now for someone to step forward and assert themselves for a new way of getting people information for doing search in a mobile world," Jackson said.

"I don't think typing in a blue box is the ideal format for a mobile world. And I think the best opportunity out there to displace Google in this area is probably Apple's Siri."

However, Google could still turn things around, and the company is doing some things to make up for the decline in CPC.

Google shopping, for example, has been changed to only show paid results in a way that should generate a lot of money for the company, Jackson said. This too, however, could pose a new problem for the search giant.

"The question is, is that move going to degrade the service, is that sort of the tip of the iceberg?" he said. "And are we going to start to see paid search results in other areas of Google and is that going to degrade the experience?"

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The article doesn't mention that google has found thenway to mitigate that loss of revenue.

They have you tube in first places all over search results.

So, nope, it's not going to dissapear.

one just needs to look at history, not many tech companies last... :2 cents:

fuck google, i'll dance on their graves.

I think Google has a better chance of being around 5 years from now then that analyst. Comparing it's mobile performance to Facebook? Gimme a break Facebook has a shitty app (seriously shitty not just me whining kinda shitty) and Google supplies the OS to 67% of smartphones. Apples to oranges.

I'll bring the booze, the bagpipes and dance right along with you!

http://i81.photobucket.com/albums/j2...eper-wille.jpg

:thumbsup:thumbsup:thumbsup:thumbsup

Google controls almost 70% of mobile apps/ads/os etc .. i think they are not gonna go away to soon. They own, Youtube, best maps, best search engine, adwords/adsense .. they went into hardware by buying Motorola .. THEY ARE HERE TO STAY!
Before W7 was out I thought Microsoft where out of the game .. but now, they are back .. launching their own hardware, w8, buying skype ..etc
I believe Yahoo did a huge mistake that is: THEY DIDN'T INVESTED IN NEW TECHNOLOGIES! and today they are only left with that messenger, the old email service and search engine.

Well, If you think about it. Google is investing alot in technology and integrating search.

The Google augmented reality glasses with change the way we search by mobile on the go.
Just imagine walking down the street with your glasses on and seeing shoes in a storefront and when you glance at that store front discount ads or todays specials are presented to you all being promoted just as they would be on your handset,pc or tablet.

Im not allowed to post links but Google " Google Augmented Reality Glasses"

google is apart of US foreign policy lol

nice troll

Google isn't going anywhere but their star won't shine as bright forever.

+1

Google has a lot of significant differences from Facebook, not the least of which is that it controls its own mobile platform. It has the know-how and the resources to capitalize on the market it has already built.

Google has become one of those companies that is so entwined in our daily lives that, despite some apparent cracks in its facade, it would take a long, long time for it to become as irrelevant as Yahoo.

The rise of mobile doesn't need to mean Google will go away. They'll adjust to the new thing and maybe be just slightly less mega-rich.

It's a pure linkbait article that has absolutely no merit.

Facebook bitch smacked Myspace. Google bitch smacked Yahoo. Facebook is still king of social media, and Google is still king of search.

What makes anyone think Facebook will be replaced? Because of it's stock? Facebook can loose half of it's value and it will still be Facebook and it will still be king of Social Media...

Googles success has always been its ability to not only adapt to changes but to also lead the way and control some of the changes. They are so dug in now and have so many irons in the fire they arent going anywhere for quite a while.

pretty lame analysis

as others have noted, comparing google to yahoo or facebook is comparing apples to oranges

IMO, Eric Jackson, 'Ironfire capital founder and managing member' was either pumping stocks he has a position in, or is someone to avoid in terms of investment advice.

:1orglaugh:1orglaugh:1orglaugh:1orglaugh:1orglaugh

No one can tell the future :) But I'm hoping in a decrease of google's popularity!

What a joke. Google hasn't been about search for awhile now. They are currently an advertising company that is switching to software and hardware.

Glasses, mobile devices, self-driving cars, cloud OS and so much more.

I just noticed he said Siri is a major threat.

Guess this guy knows nothing about its competitor Google Now that will soon be on 2 to 3 times as many devices as Siri?

Credibility: 0