Google earns less per ad

Although the revenue of search giant Google is still growing, the company earns less and less per ad. This is evident from the company’s quarterly figures. Google makes less from mobile ads than it does on PCs.

Google earned 2 percent less per ad in the quarter compared to a year ago. On his own websites – the search engine, YouTube – that decrease was even 4 percent. The decline in price per click is mainly caused by Google earns less from mobile ads than classic desktop ads, the search giant has previously indicated. In a conference call with advertisers, Google says not to worry.

Despite the lower cost per click, Google was still making more money: the search giant with 16.5 billion dollars, or 12.9 billion euros, achieved a fifth more turnover than a year ago. The profit decreased slightly, from 3 billion to 2.8 billion dollars, converted to 2.2 billion euros. This decrease is partly due to the loss of Motorola; Google previously entered into an agreement with Lenovo to sell that division, but that acquisition has not yet been completed. Google still makes most of its money on its own websites: a whopping 68 percent. Google does not disclose how much money comes in per website.

Despite the increased sales, analysts are concerned, reports The New York Times. For example, the number of times that users click on advertisements does increase, but the increase is less rapid. In the past quarter, an ad was clicked 17 percent more often than a year ago. A quarter earlier, however, that increase was still 25 percent.