The Drum Awards for Marketing - Extended Deadline

-d -h -min -sec

Google

Ad revenue surge pushes Google earnings up 17%

Author

By John Glenday, Reporter

January 31, 2014 | 2 min read

A surge in advertising revenue over the fourth quarter has seen Google’s profits jump by 17 per cent versus a year earlier to $3.38bn, after the firm increased its volume of paid clicks by 31 per cent.

Despite this success the average cost-per-click was down 11 per cent, reflecting the higher volume of mobile ads being sold which command lower prices than desktop ads.

Google remains top dog in the digital advertising market but has thus far struggled to translate healthy profits from desktop advertising into the mobile sphere.

Investors were doubly heartened by Google’s decision earlier to flog its loss making Motorola division to Chinese computer maker Lenovo for $2.91bn, leading to a jump in the tech giants share price.

This improved valuation coincides with a controversial stock split which is finally set to take place on 2 April following concerns that it would unfairly benefit co-founders Sergey Brin and Larry Page.

This will see a new class of ‘C’ rated shares, which carry no voting power, which will run in tandem with the current ‘A’ series.

In a statement Page said: “We ended 2013 with another great quarter of momentum and growth.”

Google

More from Google

View all

Trending

Industry insights

View all
Add your own content +