Mobile monetization has been extremely difficult for companies that rely mostly on ad revenue, such as
(FB - Get Report)
(YHOO - Get Report)
, while companies that sell hardware are doing well, with
(AAPL - Get Report)
the two primary examples.
Google is starting to get into the hardware with the Nexus 7, but that only accounted for about $200 million in "other revenue" during the last quarter. The company didn't break out specific results, only saying that they were pleased with the results, and ramped up marketing to support the tablet.
Google has a long way to go in figuring out how to monetize mobile ads, to the extent it did desktop. JPMorgan analyst Doug Anmuth believes the mobile search transition may be less lucrative for Google in the short term. Google is still poised for growth, as it continues to build out its ecosystem of hardware, content, and apps in its fight against Apple for domination.
It just may have to do so knowing that its core business -- advertising -- is going to be under pressure for quite some time.
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Written by Chris Ciaccia in New York