The Transform Technology Summits start October 13th with Low-Code/No Code: Enabling Enterprise Agility. Register now!
Last week Google stock crashed 10%, shedding about $21 billion in market value, when its earnings were prematurely released. Google revenue was up … but profit was down.
Now a new report from an independent source, internet marketing software company Wordstream, is giving us more information on how, exactly, that happened.
Essentially, even though total revenue rose to hit $14.1 billion, including $10.8 billion in advertising revenue, the amount advertisers pay for each click decreased significantly. Advertisers paid 16.5 percent less per click on Google search results compared to the previous quarter, and a whopping 18.2 percent less on Google’s display network (sites around the Internet that carry Google’s ads).
Looking for more data? 30 billion times a day, Google runs an ad (13 million times, it works)
In addition, click-through rates on Google search result pages dipped 12.4 percent on Google’s high-value search pages.
The upshot is that while strong growth in the number of ad impressions and clicks — 21.6 percent on Google search, and 29.1 percent on the network — drove top-line revenue, profitability as a percentage of sales was impacted. And that’s what caused such panicky GOOG stock selling that Google asked NASDAQ to halt its stock trading temporarily.
The data comes from a study that analyzed 2,600 AdWords accounts with a quarter of a billion dollars in annualized spend, including both small and large advertisers.
So how does Google make over $100 million a day?
VentureBeatVentureBeat's mission is to be a digital town square for technical decision-makers to gain knowledge about transformative technology and transact. Our site delivers essential information on data technologies and strategies to guide you as you lead your organizations. We invite you to become a member of our community, to access:
- up-to-date information on the subjects of interest to you
- our newsletters
- gated thought-leader content and discounted access to our prized events, such as Transform 2021: Learn More
- networking features, and more