Mobile advertising is not the villain of Google, analysts say

Google’s quarterly result meant that the company’s stock fell nearly 5% at the beginning of after-market trading. The big disappointment of the market was the drop in the price of advertising. The ‘cost per click’ (CPC) fell 6% in relation to 2012. In the quarterly comparison, the fall was 4%. Analysts’ forecast, however, was more optimistic: a decline of only 3% in the CPC.

However, while the numbers are below Wall Street expectations, some analysts argue that the search giant’s business is not as bad as it looks. According to the Business Insider, experts warn that despite the drop in CPC, Google has managed to raise the number of total paid clicks. In this quarter, the increase was 23% over last year.

That is, even though the cost per click has fallen, due to the lower value of the click on ads on mobile devices, the company managed to increase the amount of total paid clicks and, this percentage increase, compensates for the lower price of mobile advertising.

Google acknowledged that the growth in mobility has driven the decline in its revenue per click, but that is far from the only reason, according to analysts. As Larry Page himself suggested during this Thursday’s announcement, 18, experts believe that cell phone growth is helping the company, as worldwide adoption of tablets and smartphones is primarily responsible for raising the company’s total paid clicks. .

Results

The search giant reported earnings of $ 9.56 per share (total of $ 3.2 billion), up 16% over the same period last year. The company’s revenue grew 19%, reaching US $ 14 billion. The market expectation was that the company’s revenue would reach US $ 14.4 billion.

Motorola, acquired in May 2012 by Google, continues to report losses, according to the report. The manufacturer lost $ 342 million, against $ 272 million in the last quarter.

Google Mobility result Online advertising

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