Google launched Android Wear and Android TV at the seventh annual I/O developer conference. The search engine giant flaunted its expertise in offering connected user experience across multiple devices other than the smartphone and tablet market.  The Android integration from the company will pin Google (NASDAQ:GOOG) (NASDAQ:GOOGL) at the top in the “Internet of things,” believe Baird Equity Research analysts Colin Sebastian and Benjamin C. Gaither, in a report dated June 25, 2014.

Google IO 2014 stream

More for developers

Analyst at Baird Equity noted that Android L, the new Android update will assist developers to create applications exclusively for the different devices and connecting across the Android devices in real-time. Developers will be able to access unique SDK for both Android Wear and Android Auto platforms, which will require the developers to have higher degree of contextual awareness and allowing them to offer content to users according to their specific device. Developers were waiting for the Interconnectedness across devices announcement from Google, which was welcomed heartily.

Android TV, a big potential

The search engine giant took deeper interest in integrating the latest Android L software with the TV OEMs, which will be supported by an Android SDK for television apps. Android TV would be a major contributor in increasing the app monetization, which would increase the advertising opportunities over the long-term, believe analysts. At present, the customers with high-end OEM support can avail Android TV and it would not be available for masses “as quickly as experienced with Android smartphones/tablets or AppleTV boxes.”

Analysts positive on Google

Baird Equity analysts have assigned Outperform rating to Google with a price target of $675. The report notes that Google rules the roost in advertising marketing and will achieve growth in display advertising as well the “explosion of the mobile web.”

On the basis of the reported advertising-related revenues, Google leads the list of media firms, “having single-handedly driven search advertising to the mainstream,” according to analysts, who further believe that it is positioned to extract advantage from a healthy search business, the surge in the company’s display ad platform and highest market share on the mobile device.

Separately, RBC Capital Market analysts (Mark S. Mahaney, Andrew Bruckner, Rohit Kulkarni and Brian Peak) in a report dated June 25, 2014, expect that the internet advertising has lot of room to grow as it reached near $375 billion in 2012. Google has dominated the search advertising grabbing a share of around 70% of the Global Search ad revenue. Analysts, also, noted that Google has developed competitive defenses around itself by aggressive product innovation and investment in capex and R&D. RBC Capital Market have an Outperform rating on Google with a price target of $670.