Google just reported its Q1 numbers today ... http://www.reuters.com/article/2014/...A3F1Q220140416
Google Ad Prices Drop 9%, Click Volume Up 26%, Stock Down 5.7%
(Reuters) - Google Inc's first-quarter revenue fell short of Wall Street targets and margins narrowed as the price of its ads continued to decline, pushing its shares sharply lower.
Shares of Google were down 5.7 percent at $525 in after-hours trading on Wednesday.
The number of "paid clicks" by consumers on Google's ads increased by 26 percent in the first quarter, disappointing some analysts that had hoped for stronger volume growth. And the average "cost per click" declined 9 percent, extending a downward trend as mobile advertising, typically cheaper than traditional online ads, make up a bigger slice of its business.
"It's an average quarter from a great company," said BGC Partners analyst Colin Gillis. "It's the same old story. Paid clicks were a little lighter than people might have hoped, CPC declines were a little higher than people would have liked, expenses continued to rise."
Operating income slipped to 32 percent of revenue on an adjusted basis, from 34 percent in the year-ago period. Google's core Internet business revenue climbed 19 percent to $15.42 billion in the first quarter from $12.95 billion in the year-ago period. It posted $3.45 billion in net income, or $5.04 per share, in the three months ended March 31, compared to $3.35 billion, or $4.97 per share, in the year-ago period.
Excluding certain items, Google earned $6.27 per share.
Google reported a $198 million net loss from "discontinued operations," which includes the Motorola smartphone business. Google announced plans in January to sell the money-losing business to China's Lenovo Group for $2.91 billion.
Seems like the "Enhanced Campaigns" policy is biting them back. I've been seeing mainstream sources starting to share hacky affiliate-style workarounds for avoiding running Adwords ads on mobile, which can't be a good sign for them!
the new policy update won't help please shareholders either.... we are having one hell of a time trying to spend xxx per day now, and we used to spend high xxxx per day with them daily .... Q2 is going to be even more interesting!!
26% increase in ads click is quite big,
Its crazy that such hugh company grow year after year exponentially..
I wonder what contirbute it?
more mobile phones? increase ctr?
karma I guess.
maybe they'll start easing up their rules a bit.
actually simple logic much more clicks in mobile
will reduce average cpc (mobile clicks cheaper..), but increase ads clicks
26% increase is hugh,
mobile is booming this is one of the best indicator..
google actually controlling thier growth,
they dont want to grow so fast,
its like the average succesfull affilate knows how to double his income, most companies that relies on traffic also know how to double, and google is example of it..
the market is growing exponentially + so undeveloped market = tons of oppertuinties
when I say undeveloped market I compare it to the markets, if you trade and there is the smallest arbitrage roobots will kill it in less than millisecond,
but in online marketing the arbitrage might even stay there for months or years without no one that will notice it..
its time for the move on the crown!