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Google misses earnings expectations for the 2nd quarter

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By John Glenday, Reporter

July 19, 2013 | 1 min read

Google has fallen well short of analysts’ expectations in the second quarter, despite posting profits of £3.4bn, up 16 per cent on a year earlier.

This was driven by stronger advertising revenue, up 15 per cent, but a greater share of this is coming from mobile which command a lower premium.

The news sent its share price falling 4 per cent but Google chief Larry page has vowed to prioritise simplicity for advertisers through Enhanced Campaigns.

Alistair Dent, head of PPC at PPC-specialist agency, Periscopix, said: “Enhanced campaigns have had the greatest effect on e-commerce companies, which has CPCs increase significantly. Other sectors aren’t seeing CPCs rise as much as expected.

“Google Shopping isn’t attracting the levels of budget yet that we expect to see in the future, but this is likely to change, and the full effect of Google Shopping will be seen in Google’s full year results.”

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