Google's Future Lies in Glass and Fiber, Present Is In Ads

The biggest surprise in Google’s first-quarter earnings was the drop in advertising’s share of non-Motorola Mobility revenue from 96 percent a year ago to 92 percent in the most recent period. Advertising still makes Google a bunch of money—$11.9 billion in Q1, up 16 percent year-over-year—but the search giant’s $12.95 billion quarterly non-Motorola revenue also streams from businesses like Android app purchases and digital movies, music and magazines bought through its Play marketplace. If anything, advertising’s share of revenue will continue to dip as Google enters new markets like augmented reality eyewear, self-driving cars and wireless Internet infrastructure.