As growth in Internet advertising is grinding down in the most current quarter, Google Inc’s revenue did not live up to expectations of Wall street as its effects were to offset a slight improvement in the pricing of ads, pulling down by 3 percent its shares.
The summed number of paid clicks or ads only advanced by 17 percent in the third quarter. This is in strong contrast from what Google has set in the second quarter, which was a 25 percent growth rate.
However, it is important to point out that rates for online advertising, that has went no other place than in decline for several years, went on a positive movement in the third quarter, having a result of a decline of 2 percent year-on-year. It is a remarkable improvement compared to second quarter’s 6 percent decline in CPCs or cost per click.
As argued by BGC Partners analyst Colin Gillis as he stated that the CPC decline being corrected is a big positive and it will have a meaningful effect on the core if it continues to flat line.
In the extended trading on Thursday, Google shares went down to 2.7 percent to $510.11.