Google profit soars, but key metric declines

12.04.2012
Google's profit soared 61 percent in the first quarter, but the average "cost per click" paid to Google by advertisers declined for the second quarter running, the company reported Thursday.

Google's profit for the quarter, which ended March 31, was US$2.89 billion, up from $1.80 billion in the first quarter of 2011. Revenue was $10.65 billion, up 24 percent from the same quarter last year, Google said.

Average cost per click, or the amount advertisers pay Google when users click on their ads, fell by 12 percent year over year. Last quarter the figure declined by 8 percent.

Google has noted that the total number of paid clicks on its ads continues to rise, however. In the first quarter it increased by 39 percent from a year earlier.

Part of the decline in cost per click (CPC) has come from users shifting from desktop to mobile browsing, where advertising is cheaper. But on a conference call with investors, CEO Larry Page predicted that mobile ads will eventually cost more than desktop ads.