Google 2014 Annual Report Download - page 12

6 GOOGLE INC.
PART I



may establish unique technical standards for its devices, and our products and services may not work or be viewable on these
devices as a result. Some manufacturers may also elect not to include our products on their devices. In addition, search queries


the problems we may encounter in adapting our products and services and developing competitive new products and services.

multiple platforms and devices. If we are unable to attract and retain a substantial number of alternative device manufacturers,
distributors, developers, and users to our products and services, or if we are slow to develop products and technologies that
are more compatible with alternative devices and platforms, we will fail to capture the opportunities available as consumers and
advertisers transition to a dynamic, multi-screen environment.
We generate a signicant portion of our revenues from advertising, and a reduction in spending by or loss of advertisers
could seriously harm our business.

us at any time. Advertisers will not continue to do business with us if their investment in advertising with us does not generate

manner. If we are unable to remain competitive and provide value to our advertisers, they may stop placing ads with us, which


patterns. Adverse macroeconomic conditions can also have a material negative impact on the demand for advertising and cause

Our revenue growth rate could decline over time, and we anticipate downward pressure on our operating margin in the
future.
Our revenue growth rate could decline over time as a result of a number of factors, including as a result of:
•increasing competition,
•changes in property mix, platform mix, and geographical mix,
•the challenges in maintaining our growth rate as our revenues increase to higher levels,
•the evolution of the online advertising market, including the increasing variety of online platforms for advertising, and the
other markets in which we participate, and
•the rate of user adoption of our products, services, and technologies.

for many aspects of our business. For instance, our operating margin will experience downward pressure if a greater percentage
of our revenues comes from ads placed on our Google Network Members’ websites compared to revenues generated through
ads placed on Google websites or if we spend a proportionately larger amount to promote the distribution of certain products.

generate from advertising on Google websites. Also, the margin on the sale of digital content and apps, advertising revenues from
mobile devices and newer advertising formats are generally less than the margin on revenues we generate from advertising on
our websites on traditional formats. Additionally, the margin we earn on revenues generated from our Google Network Members
could decrease in the future if we pay an even larger percentage of advertising fees to our Google Network Members.
We are subject to increased regulatory scrutiny that may negatively impact our business.

experienced increased regulatory scrutiny as we have grown. For instance, several regulatory agencies have sought to review our

and other regulatory authorities around the world in investigations they are conducting with respect to our business and its impact
on competition. Legislators and regulators may make legal and regulatory changes, or interpret and apply existing laws, in ways
that make our products and services less useful to our users, require us to incur substantial costs, expose us to unanticipated
civil or criminal liability, or cause us to change our business practices. These changes or increased costs could negatively impact
our business and results of operations in material ways.