Google reports 9% drop in CPC
Google Inc. has reported what analysts said were average first-quarter results from ‘a great company’ as the price of its ads continued to decline, underscoring the challenges internet companies face as the world shifts toward mobile devices, Reuters has reported. The number of “paid clicks” by consumers on Google’s ads increased by 26% in the first quarter, disappointing some analysts who had hoped for stronger volume growth, while the average “cost per click” declined 9%, extending a downward trend as mobile advertising, typically cheaper than traditional online ads, make up a bigger slice of its business. “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,” said BGC Partners analyst, Colin Gillis.