Patil wrote, “We expect Google to report a solid 2Q with a modest upward bias to estimates. Our checks and industry data point to healthy 2Q paid search trends, though we would note that Google has benefitted from strong other revenue in recent quarters driven by apps, content and hardware”. He continued, “Our checks continue to suggest that GEC appears to be neutral to positive for overall spend in the near-term, and is helping to drive more budget allocation to mobile. One SEM noted that GEC is helping advertisers capture the long-tail traffic on mobile, resulting in improved revenue per click on smartphones. That said, it does not appear that smartphone CPC inflation has occurred since the migration, as advertisers have been watchful of their smartphone bidding strategies. Additionally, feedback continues to suggest strong growth for PLAs, with pricing now at a premium to comparable text-based ads”.
According to TipRanks.com, which measures analysts and bloggers success rate based on how their calls perform, analyst Shyam Patil currently has a one-year average return of 4.9% and a 46% success rate. Patil is ranked #1607 out of 3212 analysts.