A grade for Alphabet

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Some interesting news has developed in the race to become the world’s most valuable, profitable and successful company. It has recently been announced that Alphabet (that is Google’s parent company incase you didn’t know) have overtaken Apple to claim this achievement.

We all know and realise what a big organisation Apple is in its own right, with the sales and huge popularity of products such as the iPhone and the iPad. For Alphabet to now overtake this, it is quite a remarkable stepping stone. As you would expect, with such a good piece of news to boast about, the share price went up significantly.

So what is behind this apparent sudden surge? It is probably down to the increase in mobile searching and mobile advertising which we have reported on before. A few years ago it looked like the whole mobile arena would become a problem for Google, but since we now know that mobile searching has overtaken desktop searching (and thus advertising too) these two have become more aligned recently which when pooled together add to extra and higher overall profit.

It is worth also highlighting the impact of advertising alone. Clicks which are paid for (i.e. where an advertiser will pay every time someone clicks on one of their advertisements) are up over 30% on the internet as a whole and around 40% on sites associated with Google. With figures like this, it is easy to see why Alphabet has overtaken Apple.

The bigger point about this piece of news is the impact for the future. Many see it as a new era of technology and changes ahead. Once upon a time we all remember when IBM was king and this was soon overtaken by Microsoft which lasted for a number of years. Nothing lasts forever though and this was later followed by Apple claiming the title, but even this has now run its course.

The thing to watch out for is how long will Alphabet stay in this position, and what will it bring to the world during its reign?

For starters, maybe it can pay some more tax?

On the subject of paid advertising, visit our PPC setup section and you will find more information on what this is, and how it can benefit you.

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