Google’s profits are growing

Revenues exceeded expectations, because retailers have spent more money on advertising their goods before the New Year, Bloomberg writes.

The report states that in the fourth quarter of 2013, compared with the same period a year earlier, revenue increased by17%, to $ 16.86 billion. A share price grew to $ 12.01 per unit. Operating expenses, excluding the cost of revenues increased by 14%, to $ 5.5 billion, net profit - by 16.6 %, to $ 3.38 billion.

Google upgrades its advertising opportunities. Thus, the company is expanding the description of goods in the catalog ad that the buyer can get more detailed information about the product, including photos, price and so on.

Prices for ads in Google dropped by 11% in the fourth quarter compared with a decrease of 8% in the previous period. However, the effectiveness of advertising has grown by 31 %, compared with 26% in the past quarter.

It is expected that this year the company's share in the online advertising market shall increase to 41%. The closest competitor of the company will be the social network Facebook, which takes just 8.2% of digital advertising.

Now Google is changing behavioral strategy in the mobile phone market. The company has refused from unprofitable business of Motorola, and sold it to Chinese company Lenovo Group with a loss of $ 384 million. Internet giant concentrate forces on improving the Android operating system for smartphones, as well as the development of new technologies.

Sale of loss-making business and positive financial report caused Google stocks to rise by 4%, to $ 1,182 a piece. The market value of the Internet giant rose to $370 billion.