Google Ads

With Google controlling the market for search based ads, much of the company's attention was focused on new initiatives that might allow the company to sustain its extraordinary growth in revenues, earnings, and net cash provided by operations. Google launched its Android operating system for mobile phones in 2008, which would allow wireless phone manufacturers such as LG, HTC, and Nokia to produce internet enabled phones boasting features similar to what were available on Apple's iPhone. Widespread use of the Internet-enabled Android phones would not only help Google solidify its 2008 mobile search market share of 63 percent, but would also allow it to increase its share of banner ads and video ads displayed on mobile phones. Perhaps the company's most ambitious strategic initiative in 2009 was its desire to change the market for commonly used business productivity applications such as word processing, spreadsheets, and presentation software from the desktop to the internet. The company's Google Apps "cloud computing" software would allow corporate software users to access Google's data centers to run software applications and store files that might be needed by other users engaged in collaborative projects. Information technology analysts believed that the market for cloud computing applications could grow to $95 billion by 2013. The company had developed its Chrome operating system and Chrome browser specifically to handle the demands of running cloud applications. Other strategic issues confronting Google's chief managers in 2009 included how to best capitalize on such recent acquisitions as its DoubleClick banner ad management program and YouTube video sharing network and how to increase its share of search based ads in emerging markets. However, the ongoing recession in the United States and other developed countries might prove to be the greatest obstacle to Google's future growth. The company's revenues during the second quarter of 2009 grew by a meagre 3 percent over the second quarter 2008 revenues although its net income grew by 18 percent from the same period in 2008 to reach an impressive $1.48 billion.