Boston, MA 10/18/2013 (wallstreetpr) – Google Inc (NASDAQ:GOOG) reported a strong quarter and in after hours trading had touched $959.65 after a rise of 8%. The company reported a 23% revenue rise from the internet business. With the exclusion of the fee payouts to partners, revenue in this segment stood at $10.8B. The company’s business has been facing some heat just as its competitors like Yahoo and Facebook have been facing.
The pay-per-click concept
This is primarily because users now prefer to access their services via tablets and smartphones rather than on PC’s. Advertising rates on mobiles tend be much lower than on PC’s and at the end of the day, this affects the company’s earning capacity. In the Q3, there was an 8% drop in the cost-per-click that advertisers pay Google which further ate into the 6% dip that the company had experienced in the Q2. However, there was a 26% rise in the total number of paid-clicks, y-o-y, in the 3 months that ended 30 September.
This was the highest growth that the company experienced in 1 single year. The fact is that the growth in ad-volume is outrunning the drop in cost-per clicks, said a JMP Securities analyst.
The mobile trend
Approximately 40% of the traffic to the Google-owned website comes from mobile devices said Larry Page, the company’s Chief Executive Officer. Even up until 2 years ago, that figure stood at only 6%. On the whole, Google has been very good with its strategic positioning even as there has been a huge growth in mobile and the company has managed to turn that positioning into a lucrative one. Google’s growth outside the United States and Britain has also been very healthy and the company experienced a revenue growth of 28%.
