Google Earnings: Revenue Up 19%, Paid Clicks Up 23% But CPC Down 6%

Jul 22, 2013 • 8:15 am | comments (11) by twitter Google+ | Filed Under Google News & Finances
 

GOOG Q2 2013Google announced earnings last week and for the first time in a long time, those earnings did not beat expectations.

The main concern from investors is the 6% drop in cost per click (CPC) prices. While we've seen a 2-4% decrease in those prices, it seems the 6% scared many.

For the quarter, EPS came in at $9.56 per share on revenues of $14.1 billion. Analysts had been looking for $10.80 and $14.4 billion respectively.

Here are some of the highlights from the huge earnings report:

  • $14.11 billion for the quarter ended June 30, 2013, an increase of 19% compared to the second quarter of 2012.
  • GAAP operating income in the second quarter of 2013 was $3.12 billion, or 22% of revenues. This compares to GAAP operating income of $3.24 billion, or 27% of revenues, in the second quarter of 2012.
  • Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of our Network members, increased approximately 23% over the second quarter of 2012 and increased approximately 4% over the first quarter of 2013.
  • Average cost-per-click, which includes clicks related to ads served on Google sites and the sites of our Network members, decreased approximately 6% over the second quarter of 2012 and decreased approximately 2% over the first quarter of 2013.
  • As of June 30, 2013, cash, cash equivalents, and marketable securities were $54.4 billion.

Bad bad bad numbers Google. :)

Forum discussion at WebmasterWorld.

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Comments:

Dave

07/22/2013 12:43 pm

The paid clicks will increase day by day, if they continue to serve results that are not fruitful. Users will be forced to click on Ads, if after clicking on first page organic results and they are not getting what they are searched for. And its difficult to understand how their average CPC has decreased, whereas the money we spent on to remain on first page is increasing day by day. This is conflicting report, as more people and more companies are switching to Adwords to remain in business and this has increased CPC for the money keywords. But if there CPC is really down, then beware of new UPDATES coming soon to increase their CPC both for Organic Results and Quality Score for Adwords.

ethalon

07/22/2013 01:22 pm

The cost per click is down across the board mostly due to the low average CPC in the mobile market. As this becomes more utilized by marketers, expect the average CPC to begin to increase.

N Patel

07/22/2013 02:18 pm

CPC is low becuase supply is high, mobile accounts for little of their CPC troubles. Amit Singhal's task was to penalize sites to force them advertise, a job well done by that crook. Google is ruing their service. rigged and all ads. word will spread.

Assaf

07/22/2013 05:08 pm

It's not about to force them to advertise. It's about making ads much more relevant than the organic results. Add to that the organic results are being pushed down by ads and also by the knowledge graph.

andyyo

07/22/2013 05:35 pm

So making ads more relevant than organics, and pushing down organics doesn't force you to advertise?

andyyo

07/22/2013 05:36 pm

Who clicks on organic results anymore?

N Patel

07/22/2013 05:49 pm

When you lose traffic you have to advertise to get visitors. That's why Google did what you sad they did and penalize sites with Panda, Penguin and whatever. They are crooks and thieves. When you have a Google Dance with SERPs changing, Google is testing which one results in most ad clicks. They are rigged, everyone should know it. Be careful because Matt Cutts has asked at times for the IP of negative comment posters and Barry might give it to them.

Durant Imboden

07/22/2013 06:10 pm

"Amit Singhal's task was to penalize sites to force them advertise, a job well done by that crook." There's a lot more to the Web than e-commerce. Most sites aren't selling anything (at least, not directly) and aren't ever going to advertise. If Amit Singhal & Co. were simply interested in boosting ad sales, they wouldn't bother turning Pandas and Penguins loose on information sites: They'd focus their attention on e-commerce sites (a.k.a. potential advertisers).

N Patel

07/23/2013 12:33 am

Informational sites also have advertising you retard. And different rules apply to them vs ecomm

Kamaldeep Singh SEO

07/23/2013 08:13 am

Yes I think paid links will sure go up coz normal user can't identify which links are paid or which is organic links so they clicks only these links which are shows on the top linke google ads and sponsors link

guy

08/13/2013 01:40 pm

adsense revenue is just pennies now. nobody not want to click ads which everywhere and not-relevant.

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