Google Ad - Trade of the Day: Google (GOOG)

Source - http://investorplace.com
By - John Jagerson and Wade Hansen,
Category - Google Ad 
Published By -  Imagination Print

Google Ad       

Recent moves by Google should keep their ad revenue momentum strong

Recommendation: Buy GOOG under $800 per share with a price target of $860 by September 2013.
Option Alternative: Buy to open the September calls at the $790 strike price for $55 per share or less. Advanced option traders may choose to cover that long position with a short call in March in a diagonal spread
Whether it is a new acquisition or a policy that can set the standard for the industry, Google (NASDAQ:GOOG) has taken several steps that will help it continue its climb to break $800 a share for the first time.

        AdWords

An issue for companies like Google that rely heavily on Internet ad revenue is the increasing number of people using mobile devices instead of personal computers. This leaves these companies tasked with putting ads on these smaller devices and getting people to click on them as they would on their personal computers.
Google is updating AdWords by rolling out mobile enhancements to the popular advertising program, which allows businesses to choose keywords. They then pay Google every time someone performs a search using those keywords and clicks on their ad. Currently, more than $40 billion of Google’s annual ad revenue comes from AdWords.

Many business owners report that they have seen sales increase with AdWords, but they also have seen the cost per click increase dramatically. And even if business owners don’t care to advertise on mobile devices, they’ll still have to pay for it, which means they’ll pay higher rates.

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Google said the enhanced campaigns allow businesses to better tailor their ads to meet the growing population of people who use mobile devices. The question becomes whether small business owners will take the bite.

Partnering With Yahoo!
In the meantime, Google and Yahoo! (NASDAQ:YHOO) have partnered in a non-exclusive contextual advertising deal. This partnership includes Google ads appearing on Yahoo pages and certain co-branded sites using Google’s AdSense for Content and AdMob services.
In a statement released by Yahoo about the partnership it was said: “Say you’ve been shopping for boots. If you see an ad for boots, that’s instantly going to pique your attention more than an ad for, say, a car battery. That’s better for users. This is why contextual advertising is such a powerful tool.”