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Google's Stock Beats Earnings Expectations, But Stock Slides On Cost-Per-Click Concerns

Discussion in 'Pay Per Click' started by The Curator, Jul 24, 2017.

  1. The Curator

    The Curator Jr. VIP Jr. VIP

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    http://www.zerohedge.com/news/2017-07-24/google-beats-stock-slides-cost-click-concerns

    Yet while Google's top and bottom line results were both impressive, the reason why the stock was down as much as 3.6% in the after hours appears to be that Google reported paid clicks in Q2 rose by 52%, well above expectations, while cost-per-click - which measures what advertisers pay when people click on search ads that show up alongside the results served up by Google’s search engine - declined 23%. In other words, more people are clicking on ads, but those clicks are costing advertisers less money per click. In short, a potential revenue mix concern where Google is compensating for lost pricing power with higher ad volumes.

    I wonder if this trend will sustain?
     
  2. Rob White

    Rob White Newbie

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    I doubt it, there are concerns because of the rise in mobile traffic, which is less competitive (less profitable on a last-click basis), although Google know the value of this device in the decision process so they are pushing this a lot at the moment.
     
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