Eric Sheridan – UBS
Thanks for taking the questions. One on on device mix, which Omid, you you called out. Is there any sense you can give us of whether some of the pricing per ad unit is starting to close from the device mix. So even though you’re giving more volumes from mobile whether be smartphone or tablet we’re starting to see any impact of pricing continues to move up ahh versus desktop pricing you’re seeing across your ad portfolio, would love any commentary around that. And then second you know, Patrick, you called out the FX impact in the Q4, any help you can give us on how we should be thinking about the FX impact going forward on either a gross or a net basis to the business as you see it versus spot today? Thanks.
Patrick Pichette – Senior Vice President & Chief Financial Officer
Sure, I’ll let Omid answer the first question then I’ll jump on the second.
Omid Kordestani – Chief Business Officer & Special Advisor to the CEO
Sure. Thanks, Eric for the question. You know, the way we look at this, as I said, we look at mobile and aahh as a behavior today really as ahh, versus a specific device. And people are using screen interchangeably, simultaneously throughout the day. And aah we really think about the user and the context rather than a particular form factor or device. And similarly in terms of the pricing model here, aahh what we’re focused on really building this ecosystem just the way desktop aah took a long time ahh to develop aah and have the right ad formats aahh that really took advantage that the platform had to offer. We’re looking at this the same way. Ahh, we are developing different kinds of formats, working with marketers on mobile, estimated store visits, app install, app re-engagement ads and cross device conversions. And we really feel good about the traction uhhm we’re having and aah our sales team and uhmm advertiser agencies partners that are working with us uhm making rapid progress here.
So unfortunate, I can’t disclose any specific breakdowns, but aah I can just say that aah we’re aah very focus on all aspects of this just aahm as we evolve to desktop we’re doing the same in this world. On to you, Patrick.
Patrick Pichette – Senior Vice President & Chief Financial Officer
Thank you. Uhm on the issue of FX, I think that the most important point to think about in Q4 is, I mean it was material as I said, it was like on a gross basis over $600 million. You’ve all seen the deterioration of the euro, the GDP, the yen, I mean it’s aahm versus the U.S. dollar. The one thing I would just note from our results in Q4, I I mentioned this in the past that you know our FX rates are set at Google you know a month in [inaudible]. So, in in last week of November we would’ve set our FX rate for December. So interestingly you know,the December rates we’ll set January. And you’ve seen already in December a continued kind of nose dive in certain areas, especially the euro, and the yen. So, uhm all I can say is for all the information we have right now is, that’s not going away.
And I think that everybody should be kind of considering it. On the flipside of that, I just want to kind of re reinforce the fact that you know our FX ahm hedging program ahm continues to do exactly what it’s supposed to do, which is in a low volatility environment we buy insurance. And in in moments where we have such shocks like we’re having right now, you know we did get a lot of benefit out of this hedging program and just as a remainder ahm we hedge profits, right? We don’t hedge revenue, it just happens that we book ahm the profits to revenue because of the accounting rules. And so we’ve seen in Q4 approximately $150 million of hedge benefits, which is actually quite a substantial amount on the on the total $600 million and you know we’ll continue to have hedge benefits through the course of the year to a certain extent. So, uhm so, I think that from that perspective, right, ahm you know real real hit in December additional, but ahm but in a good position from our hedge FX program.
Eric Sheridan – UBS
Great. Thank you so much.
Patrick Pichette – Senior Vice President & Chief Financial Officer
Thank you for those questions. Jamie, why don’t we go to our next question, please.
Operator
And we’ll go next to Ross Sandler with Deutsche Bank.
Ross Sandler – Deutsche Bank
Great. I have two questions. Patrick, towards the end of the prepared remarks you said that Google will show a balance of growth and discipline, and a willingness to throw a little back. Can you just elaborate on that comment? Wh what do you mean when you say that? Are you referring to the pace of expense growth or throwing something back in terms of capital allocation, just a little clarity on that one?
