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:
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’? ….