Wednesday, October 17, 2012

Google Inc (NASDAQ:GOOG)’s Search Ad Revenue Growth Will Be in Focus In Q3

Google Inc (NASDAQ:GOOG), which is scheduled to report its third quarter earnings on Thursday, will be on watch primarily with respect to its efforts to garner revenues from alternative businesses.

Forbes said that analysts will be watching its search ad revenue growth and using its YouTube channel for display ads and the response to that.

"We will be closely watching Google’s year-over-year paid click growth, which is extremely important for the search ad segment’s growth, because in recent quarters it has helped offset declines in average revenue per click (16% in Q2). The company has posted accelerating growth in paid clicks for the past four quarters, reaching an astonishing 42% y-o-y growth rate during Q2," Forbes said.

How Should Investors Trade GOOG Ahead of Earnings? Find Out Here

In the second quarter the Internet search giant reported earnings of $11 billion, a rise of 21 percent on year and an increase of 3 percent sequentially.

Its revenues rose 35 percent on year to $12.2 billion, which included figures of Motorola.

Though the cost per click showed a downward trend, there was an increased in the number of paid clicks.

The growth in paid clicks is an indicator of Google's success in monetising its search platform while a rapid increase in this parameter means a combination of an increase in users and searches. It also points to a great willingness on the part of advertisers to place their ads on Google.

A rise in paid clicks will allay investor concerns that its search business is slowing

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