Yesterday the earnings for search engine giant Google was released and Analysts were disappointed on what was reported. Google’s shares took a dip after the earnings were released. For Google having Tablets and Smartphones has been great but now its them because they make less money on mobile ads than on desktop ads.
The company reported that the price advertisers paid per click on an ad — referred to as cost per click — decreased 15 percent from the same period last year. This was the fourth consecutive quarter that number has declined, even as the number of paid clicks on ads climbed 33 percent, largely because people see Google ads on their phones on lunch break or in bed, not just when they are in front of a computer.
The challenges of making money in a mobile world were not the only reason that Google’s net revenue and earnings per share fell significantly below analysts’ expectations. Motorola Mobility, the ailing cellphone maker it recently acquired, is bleeding money.
[nyt]
