While paid clicks rose, the cost per click dropped in the second quarter
Google's core advertising business helped to propel a 22 percent increase in sales during the second quarter, even while the cost of its ads dropped.
Revenue for the quarter ended June 30 was US$15.96 billion, Google said Thursday, beating the forecast of $15.62 billion, from analysts polled by Thomson Reuters.
Net income was $3.42 billion, up nearly 6 percent from $3.23 billion in the second quarter of 2013.
The company's earnings per share, excluding certain expenses, was $6.08, a disappointment to analysts expecting $6.24 in earnings.
Thursday's results marked the first time Google separated out the money it makes from ads placed on its own sites like Google.com and YouTube, versus the ads on outside sites.
The numbers showed the paid clicks on Google's own sites rose by 33 percent, suggesting a strong core business. Paid clicks on outside sites rose by roughly 9 percent.
But the cost-per-click dropped by roughly 7 percent on Google's sites. The cost dropped by 13 percent on outside sites. The drop could be due to the lower price of ads on mobile devices.
Still, "Google had a great quarter," CFO Patrick Pichette said in a statement.
The company also said that Nikesh Arora, Google's chief business officer, will be leaving the company after 10 years with Google. He will be replaced for now by Omid Kordestani, Google's business founder, the company said.
Google shares were trading up after hours Thursday at $582.33, after closing at $573.73.
(More to follow.)
Zach Miners covers social networking, search and general technology news for IDG News Service. Follow Zach on Twitter at @zachminers. Zach's e-mail address is zach_miners@idg.com
Welcome to Launch Marketing Council’s new 3-part series focused on unlocking the secrets of launching brands, products and service by exploring real-life examples from Australia’s marketing elite, in conjunction with the independent agency Five by Five Global.
In early 2020, I had the pleasure of staying at the newly opened Fullerton Hotel in Sydney. It was on this trip I first became aware of the Fullerton’s commitment to brand storytelling.
If you’ve been around advertising long enough, you’ve probably seen (or written) a slide which says: “They won’t remember what you say, they’ll remember how you made them feel.” But it’s wrong. Our understanding of how emotion is used in advertising has been ill informed and poorly applied.
The launch of a new brand, or indeed a rebrand, is a transformation to be greeted with fanfare. So why is it that once the brand has launched, the brand execution phase can also be the moment at which you kill its creativity?
Are you sure they wont start a platform that the cheese is white, pretty sure that is racist
Hite
New brand name for Coon Cheese revealed
Real digital transformation requires reshaping the way the business create value for customers. Achieving this requires that organization...
ravi H
10 lessons Telstra has learnt through its T22 transformation
thanks
Lillian Juliet
How Winedirect has lifted customer recency, frequency and value with a digital overhaul
Having an effective Point of Sale system implemented in your retail store can streamline the transactions and data management activities....
Sheetal Kamble
Jurlique’s move to mobile POS set to enhance customer experience
I too am regularly surprised at how little care a large swathe of consumers take over the sharing and use of their personal data. As a m...
Catherine Stenson
Have customers really changed? - Marketing edge - CMO Australia