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Google Mobile Advertising – PRimage comment

Friday, July 20th, 2012
Judy Viitanen has been looking at Google’s latest financial results … Seems that Google sold more advertising at lower prices ….  The number of “paid clicks” during the quarter, or clicks on advertisements for which Google charges a fee, surged by 42 per cent from a year before, marking an acceleration from the first three months of this year. However, the company also reported a further deterioration in the amount of money it makes from each click, with a 16 per cent decline due to a shift to lower-priced mobile advertising and the impact of foreign currency changes.

Google’s revenues are still growing nicely:

But ….

Google’s total paid click growth and its cost-per-click are rapidly diverging:

Is this a case of ‘Piling it high and selling it cheap’? ….