Search advertising out of flavour, display advertising growing but Google shares tumble

Google announced this week its latest earnings and Wall Street  reacted with a 10% drop of the sales price.

The reason for the shortfall in its latest earnings, is an unexpected slump in pricing in its core search advertising business combined with slowing international growth and another jump in costs to dent recent optimism about the company’s prospects according to the company.

In it’s search advertising, it registered a surprise 8 per cent decline in the average cost per click, or the amount advertisers pay for each user who clicks on their messages.

This points to a move from Search Advertising to display advertising, which has now grown double the level google reported 15 months ago.

According to Larry Page, chief executive, recent heavy investments in new markets were showing results and that included further growth in display advertising, which he said had lifted revenues to an annualised $5bn. “These big bets are really paying off,” Mr Page said.

Google also disclosed continued rapid growth in the audience for its Google+ social network, which has been singled out by Mr Page as the company’s key initiative as it tries to deepen engagement with its users and counter the rise of Facebook. Google+ now has 90m users, Mr Page said, more than double the 40m that Google reported three months ago.

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One thought on “Search advertising out of flavour, display advertising growing but Google shares tumble

  1. Pingback: YouTube video website is streaming 4 billion online videos every day « Bespokevideoproduction

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