Still growing faster than the industry
Last week GOOG reported sales growth of 22% outpacing internet advertising market growth of 16% according to Zenith Optimedia. Search, video and social advertising continue to take market share from traditional banner displays helping explain the good performance of GOOG/Youtube and Facebook versus declining revenue at Yahoo. GOOG is expected to take in $53 billion of revenue this year a large number but in the context of a larger market opportunity. According to eMarketer digital ad spend will be $140 billion this year out of a $545 billion global advertising market. This digital opportunity should increase over time as mobile and internet usage increase at the expense of print and TV see below.
GOOG's fastest growing division was other which is Google Play. In the March quarter Apple's iTunes/software division recorded $4.6 billion in revenue this compares to Google's $1.6 billion in the June quarter. Android users are now larger than Apple as they continue to increase Google Play sales should eventually overcome iTunes sales giving it a chance to become GOOG's third verb.
Disclosure: Decisive has a position in GOOG stock