Google Sees Revenue Per Advert Decline As Mobile Fails to Match Desktop Revenues
Published on: 31st Jan 2014
By: Ian Mansfield
Google has posted the usual expected rise in profits and revenues for the previous quarter but is still appearing to struggle with raising revenues at its mobile advertising division.
In fact, the company prefers not to split out mobile and desktop advertising, arguing that advertisers shouldn't either -- even though it makes a significant difference to the prices being paid.
The average cost-per-click, which includes clicks related to ads served on Google sites and the sites of Network members, decreased approximately 11% over the fourth quarter of 2012, reflecting both a general downward trend, and the increased percentage of clicks generated on lower-revenue mobile sites.
Google reported consolidated revenues of $16.86 billion for the quarter ended December 31, 2013, an increase of 17% compared to the fourth quarter of 2012. In total, 56% of revenues were generated outside the USA.
Net profits, including net loss from discontinued operations was $3.38 billion, compared to $2.89 billion in the fourth quarter of 2012.
Motorola Mobile revenues fell to $1.24 billion compared to $1.51 billion a year ago.
At the end of last year, the company sat on cash, cash equivalents, and marketable securities worth USD58.7 billion.
The company also announced that it would be issuing a new C class of shares to shareholders in a move that actually entrenches the voting power of the co-founders to control the company. Page and Brin already own shares that give them 56% of the voting rights, for just 15% of the company, and as the new class of shares have no votes at all, the founders equity investment in the company will decline, but not their voting power.