Google Inc (NASDAQ:GOOG) shares climbed 55% in 2013 following the bullish take of investors on the strong revenue potential of the Web giant. The stock is expected to hit $991 on the back of improving search ads revenues, says a report from Forbes by Trefis Team.

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Google’s campaign to drive ad revenue

The search engine giant started a full-fledged campaign in the third quarter last year to increase the revenue in mobile, PC search and YouTube segments. Also, YouTube is seen as a significant catalyst in propelling display ad revenues in the future. Google Inc (NASDAQ:GOOG) would witness a declined rate of drop in the EBITDA margin due to improvement in margins of the under-performing verticals.

Google tried to clump the desktop, tablet and cell phone ads together through the campaign in 2013. The analysts are expecting a surge in the ad volume from rapid campaigns along with an increase in the internet search to take the revenue ahead, in all segments.

Google Inc (NASDAQ:GOOG) PC Search Ad Division accounts for 36% of Google’s value, and act as the primary catalyst in the search engine segment. Search from PC is expected to increase in the years ahead, following the increased penetration worldwide. Also, Google would garner greater market share in the search category due to its better search algorithm that produces accurate results. It is expected that market share of Google will surge from 65.7% in 2013 to over 68%, in the coming five years.

Support from portable devices

Smartphones and tablets have deeply penetrated into the market, and search through these portable devices is growing at a brisk pace. Currently, Google Inc (NASDAQ:GOOG) has 89% market share in the mobile search industry, but this could drop to 84% in the coming years. However, revenues are expected to come in higher due to an increase in mobile web traffic. According to a report from Gartner, the worldwide mobile ad revenue would be more than $13.5 billion in 2014, and the growth rate for ad revenue would outpace 400% during 2011-2016.

Cost per click for mobile ads is less than that of a PC, but due to increased traffic from these devices, advertisers would increase their budgets for mobile devices. Google’s revenue per search from mobile would have a positive effect as these numbers will add to the PC revenue per search.