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Sell the benefit & value – NOT THE FEATURES – Sales 101 – GOOGLE DISAGREES!

Google’s new developer policy has sent a ripple effect in the mobile industry.  Crumbling the profits of Android APP Developers,  killing the chances of high CTR for advertisers just because they don’t allow anyone to sell based on the benefit as it violates “USER EXPERIENCE”

Since when do users (customers) know what they want?   They have to be TOLD.   If we cannot use call to actions like Click Here, Download, Go There, Do This, Do That – then what is the point?    How about communicating the benefit of a product?  A Big NO NO as per new google policy.

Google now says – you can only sell by feature and/or brand name — Gee great! Who is going to click a banner with brand logo when no one heard of said brand?  Yea this works great for Coca Cola, Nike, Apple and the big boys who spent countless billions of building their brand, but what about the new guy?  The new app, the new game,  the new service, the new product no one has yet heard about but provides great benefit, and value?

Clearly the team at google that came up with the new policy forgot ONE THING –  no CTR,   no ad revenue,  no ad revenue, no profit for developers, no profit for developers > less apps on Google Play.   Less Apps on Google Play > Less Revenue for Google.   Less Revenue for Google =! HAPPY Share Holders.

Yeah it looked AMAZING on paper,   lets ban all apps that make people CLICK on banners to use the apps.  I agree, something had to be done there, but to enforce how an app developer can pay to advertise and what methods of marketing he/she can employ… that is ludicrous!      Maybe its time to go back to the drawing board google, back track on this how an app can be promoted policy — or you will have MANY, MANY angry share holders when they see the gigantic drops in revenue thanks to the genius plan that looked great on PAPER!

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UPDATE 4/17/2014

Just read this guys,    Curious how the new developer policy restricting us on how we can advertise an app will further impact Q2 results…  really interested in in the Q2 results of the future..

Google just reported its Q1 numbers today … http://www.reuters.com/article/2014/…A3F1Q220140416

Google Ad Prices Drop 9%, Click Volume Up 26%, Stock Down 5.7%

(Reuters) – Google Inc’s first-quarter revenue fell short of Wall Street targets and margins narrowed as the price of its ads continued to decline, pushing its shares sharply lower.

Shares of Google were down 5.7 percent at $525 in after-hours trading on Wednesday.

The number of “paid clicks” by consumers on Google’s ads increased by 26 percent in the first quarter, disappointing some analysts that had hoped for stronger volume growth. And theaverage “cost per click” declined 9 percent, extending a downward trend as mobile advertising, typically cheaper than traditional online ads, make up a bigger slice of its business.

“It’s an average quarter from a great company,” said BGC Partners analyst Colin Gillis. “It’s the same old story. Paid clicks were a little lighter than people might have hoped, CPC declines were a little higher than people would have liked, expenses continued to rise.”

Operating income slipped to 32 percent of revenue on an adjusted basis, from 34 percent in the year-ago period. Google’s core Internet business revenue climbed 19 percent to $15.42 billion in the first quarter from $12.95 billion in the year-ago period. It posted $3.45 billion in net income, or $5.04 per share, in the three months ended March 31, compared to $3.35 billion, or $4.97 per share, in the year-ago period.

Excluding certain items, Google earned $6.27 per share.

Google reported a $198 million net loss from “discontinued operations,” which includes the Motorola smartphone business. Google announced plans in January to sell the money-losing business to China’s Lenovo Group for $2.91 billion.

 

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