Reaction: Google reveals Q3 profit of £1.84bn - IPG Mediabrands, Stickyeyes TagMan, Marin Software, Periscopix

Google has released its financial figures for the third quarter of the year to reveal profits of £1.84bn for July through to September. So the search engine powerhouse, it would seem, is only going from strength to strength. The Drum spoke to some working in the agency scene for their take on today's figures and what they mean from a mobile and advertising perspective.

Craig Lister, head, Reprise UK

The latest figures from Google once again put mobile at the heart of the debate. People are spending more time on mobile devices, yet this is where the company makes less money on ads. Why? Because advertisers have not yet figured out the best format for mobile ads, and tracking the effectiveness of such ads is harder; a key reason why Performance agencies have veered away from mobile in the past. This all clearly has to change, and Google has made steps in the right direction by introducing Enhanced Campaigns. The way I see it, Google needs to do two things to ensure their revenues don't suffer as mobile becomes more prominent - and I have confidence that they will succeed, as it will all come down to what they do best: smart technology. Firstly, they need to introduce more effective tracking to show the impact of mobile ads - giving advertisers the confidence to invest more money in this area. Secondly, they need to get more consumers online. And they plan to achieve that through 'Project Loon', which aims to provide balloon-powered internet for billions of people around the world.Of course, advertisers have their part to play, too. When brands start to have proper functioning mobile sites that match consumers' purchasing expectations, more people will start spending via their mobiles. At the moment, many mobile sites simply aren't effective enough, so customers are becoming frustrated with the experience and returning to their PCs or laptops to complete purchases. This means performance agencies can't track the sales impact of mobile ads, and if they can't do that, fewer advertisers will invest in them. As soon as brands - and Google - get that tracking in place, we'll start to see some big changes.

Jon Baron, CEO and co-founder, TagMan

Google is the only player in the digital space with the power to raise its revenues this rapidly. Google encrypts organic search for privacy reasons which will conveniently make advertisers believe that increased investments in paid search is the obvious next course of action. Earlier this year Google stopped device-level keyword targeting meaning that advertisers had to buy mobile search words if they wanted to buy desktop search; this means the advertiser has to invest more in search if they want to maintain their desktop search activity. Google is also unique in having 90 per cent market share of web analytics which is used by three quarters of advertisers for making marketing campaign decisions. I am still searching for an advertiser who saw a Google Analytics report extolling the virtues of Facebook ads and Yahoo! Keywords, in an unbiased manner.

Alistair Dent, head of PPC, Periscopix

We haven’t yet seen the full impact of Google’s Enhanced Campaigns. Revenue is being driven up by a change in ad formats as part of Enhanced Campaigns, which mean more clicks per search, rather more money-per-click. So CPC stays low, but overall revenue goes up. This can be as much about the expansion of Google presence in developing markets, as about the lag in mobile CPCs. Every time Google opens up a new revenue opportunity, its overall revenues will rise, even though the average CPC is pulled lower. Google has released many new ad formats over recent months, including product listings and images in ads. It’s likely that the increase in ad clicks per search will have a bigger impact than CPC changes on mobiles. Google is looking to increase overall revenue in as many ways as possible. Mobile is becoming increasingly important as a driver to increase revenue. The old view that bids for mobile searches should be 20-30 per cent lower than for desktop is starting to be challenged. Analysis from Periscopix shows that mobile in most cases is actually be higher performing, which will drive greater revenues from mobile for Google.

Jon Myers, VP & MD EMEA, Marin Software

As predicted, Google's earnings show positive growth over the last quarter. This is of particular interest as they are the first results since Google introduced Enhanced Campaigns on 22 July. This move aimed to boost visibility of search ads across multiple devices in response to the rise of mobile and tablet. These figures also reflect the booming digital marketing industry as a whole, which showed a growth of 17.5 per cent (IAB) in the first half of 2013 in the UK, with mobile now accounting for 14.1 per cent of total spend.For marketers, Enhanced Campaigns has begun to level the playing field between different channels with CPCs on tablet and desktop appearing to equalise. For those marketers who effectively migrated their campaigns in July, this could have resulted in more clicks and higher visibility on mobile devices. However, it’s still early days so it’s important to continually monitor campaigns for performance and to make adjustments to maximise ROI.

Glen Conybeare, chief commercial officer, Stickyeyes

Google’s rise in profits comes as no surprise. Although the global economy has been in a state of flux for some time we’ve not seen any negative effects on digital spend. On average, our clients that have been with us for more than three years have increased their spend by 20 per cent annually and indeed this year’s growth has been larger than last. So, it is no real surprise that Google is making more money. Perhaps the interesting question is what they plan to do with it. Given they reported cash reserves of $48bn a while ago, we can assume this is now well north of $50bn. They have never been shy of acquisitions having made over 200 since the IPO in 2004 and most notably the recent $12.5bn acquisition of Motorola. We therefore expect another significant shopping spree, most likely with bolt on acquisitions to support their growing mobile offering as consumers are increasingly turning to the small screen first.