Google Climbs to Record High as Mobile Ads Dominate

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Oct. 18 (Bloomberg) -- Bloomberg’s Scarlet Fu reports on Google’s third-quarter results as sales exceeded estimates on the strength of advertising and how the company is leading its competitors in mobile ads. She’s joined by Robert Kaplan, management professor at Harvard Business School. They speak on Bloomberg Television’s “Bloomberg Surveillance.”

Going well.

I watched the red sox win but i did not which -- watch google.

The red sox won?

What is the series at now?

2-2, i think.

Google shares are rising, trading at a record high and sales climbed 12%. a divergence of the key metric because advertising prices are falling but volume rose.

Promotions through -- sold through mobile devices let -- brought in collects of 26%. there was talk that the mobile ads don't earn as much.

But cost per click is eight percent.

The hardware part remains a drag.

It is still posting an operating loss.

Michael mulveson wrote an essay 12 years ago.

Google is the big guy?

They have a 33% market share of the online advertising market and facebook is next with five percent.

The growth rate of facebook is faster than google so that's reason for concern.

Robert kaplan is with us from harvard business school.

You're on the investment committee on google?

For their cash.

You are advising them in the stewardship of that cash.

About 33% share and facebook is at five percent -- everybody else is -- do we end up with what was said 13 years ago with only two players?

The bearish entries in this area are getting higher and that's why google is spending so much money and gives finding new ways to add bell you.

Amazon has the same strategy.

The more penetrating they get, the harder it is for others to compete.

Did larry page say anything about the shift to mobile?

They have started this enhanced campaign where they link all the advertising campaigns together on one interface instead of different devices so they can push a package to advertisers.

The thing about mobile ads is that mobile ads lead to purchases less often the desktop as part it shows that advertisers have not yet figured out how to measure mobile ads and how to measure how effective they are.

When you look at this new look at at mobile as, what does it say about twitter?

We have no identification about twitter joining amazon or google?

I think the big challenge for them is how you monetize all of this participation.

It's not completely clear.

The jury is out and i'm sure they will explain on their roadshow but they will have to do a lot to use all of this to convert this into revenue.

Facebook is facing the same thing.

People engage with their mobile devices but they don't necessarily follow through and make purchases.

The jury is out.

This text has been automatically generated. It may not be 100% accurate.

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